The yen fell to a two-year low against the dollar on Wednesday as Japan's new prime minister called for weakening the currency to stimulate inflation, while U.S. stocks fell, led by declines in retailers' shares, Reuters reported. Sales growth at U.S. retailers was projected to have fallen short of expectations during the holiday shopping season, according to preliminary estimates from firms that track retail spending. The S&P 500 was down 0.55 percent, with consumer discretionary stocks among the hardest-hit. The Morgan Stanley Retail index dropped 1.8 percent. U.S. shares were also pressured as it appeared Congress will not negotiate a deal before Jan. 1 to avoid the "fiscal cliff," a series of $600 billion in spending cuts and tax hikes that would slow the U.S. economy sharply unless lawmakers take action. The Dow Jones industrial average dropped 52.66 points, or 0.40 percent, at 13,086.42. The Standard & Poor's 500 Index was down 8.77 points, or 0.61 percent, at 1,417.89. The Nasdaq Composite Index was down 24.22 U.S. stocks have held in a tight range, recovering losses sustained just after the U.S. election in November. The S&P 500 is still up about 13 percent on the year. The dollar rose as high as 85.74 yen on trading platform EBS, the highest since September 2010, following the swearing-in of Shinzo Abe as premier and was last at 85.65. The euro rose as high as 113.40 yen, a 16-month high, up 1.4 percent. The euro was at $1.3225 against the dollar, up 0.3 percent. Ten-year U.S. Treasury notes rose 6/32 of a point in price to yield roughly 1.7546 percent. The U.S. bond market was closed on Tuesday for Christmas. Brent crude climbed above $110 per barrel on Wednesday, hitting a two-month high, with investors hoping for a last-minute deal to avoid a U.S. fiscal crisis. U.S. crude futures gained $2.25, or 2.6 percent, to $90.86. -- SPA
