Photographer: Kristian Helgesen/Bloomberg The Norges Bank lowered interest rates for the first time in more than two years on Dec. 11. Preventing a “severe downturn” is the major concern of policy makers, and there’s a 50 percent chance the central bank will cut again next year, Governor Oeystein Olsen said. The yen rose amid speculation traders were locking in profits after Prime Minister Shinzo Abe’s victory in elections he called to win a fresh mandate for policies that have driven Japan’s currency to a seven-year low. Australia’s dollar touched the lowest since June 2010 and bonds rallied as commodities slumped and people were taken hostage in a cafe in the center of Sydney. The Aussie held losses after Treasurer Joe Hockey said yesterday the budget deficit is deepening because of the biggest slump in terms of trade since records began more than 50 years ago. “The market’s short-term reaction may well be to ‘sell the fact’,” as the result is as opinion polls predicted, said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo, by phone last night. “Still, in the medium to long term, there is no change in the trend for a weaker yen as Abenomics has won another four years for structural reforms and monetary and fiscal stimulus.” The yen advanced 0.4 percent to 118.23 per dollar as of 6:53 a.m. in London, after strengthening as much as 0.8 percent. The greenback added 0.1 percent to $1.2455 per euro, after sliding 1.4 percent in the five days to Dec. 12. The 18-nation currency slipped 0.5 percent to 147.26 yen. The Aussie was little changed at 82.57 U.S. cents, after touching a four-year low of 82.04. bloomberg