Japan’s currency takes a one‑week hit after a new prime minister is chosen, while the U.S. dollar stays steady
The Japanese yen slipped to its lowest level in a week following the election of Takashi Takaichi as Japan’s new prime minister. In the main trading session the yen fell to about 157.6 ¥ per $1, a 10‑month low, while the dollar held its ground near 155 ¥.
Takaichi, who served as Japan’s finance minister, was confirmed by the Diet on Thursday. He is seen as a hawk on trade and inflation, and markets are reacting to the possibility of tighter monetary policy from the Bank of Japan.
Bond traders were active throughout the day, adding to the yen’s decline as they bet that the central bank may keep rates low for a longer period to support the market. The Tokyo Stock Exchange ended the session in the negative, as investors adjusted to the change in leadership.
Analysts note that Takaichi’s government may focus on greening the economy and tightening the country’s monetary stance. The yen’s drop reflects worries that the new leadership could shift Japan’s fiscal priorities, while the dollar’s steadiness indicates that global investors remain comfortable with the U.S. policy mix.
Investors will keep a close eye on Takaichi’s policy speeches, as any sign that Japan will move away from ultra‑loose policy or alter its trade approach could reshape the currency markets again in the coming weeks.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
