The Japanese yen slipped to a one‑week low in early trade, falling against the U.S. dollar after news that Takuya Takaichi had been chosen as Japan’s new prime minister. In a crowded session, the yen weakened to about 152 per dollar, the lowest level this week.
The move follows the surprise announcement that the Liberal Democratic Party had tapped Takaichi, a former ministries chief known for his pro‑business stance, to lead the government. Market participants are weighing the implications for Japan’s fiscal policy and the Bank of Japan’s monetary strategy. A weaker yen could boost Japanese exporters by making their goods cheaper abroad, but it also raises the cost of imports and could tighten domestic inflation.
At the same time, the U.S. dollar remained firm against other major currencies, holding ground against the euro and the British pound. The dollar’s strength has been backed by expectations of a more hawkish stance from the U.S. Federal Reserve.
Forex traders watched the tight 150‑152 range closely. While the yen’s recent decline was within a normal volatility band, the one‑week low highlights the currency’s sensitivity to political shifts in Tokyo. Analysts suggest that if Takaichi adopts a more market‑friendly approach, it might keep the Bank of Japan’s accommodative policy intact, limiting further yen depreciation.
Overall, the yen’s drop reflects a mix of political uncertainty and global currency dynamics, with traders keeping a close eye on how the new Japanese leadership will shape Japan’s economic outlook.
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.
