Japanese Yen hovers near eight-month low as fiscal concerns weigh
The post Japanese Yen hovers near eight-month low as fiscal concerns weigh appeared on BitcoinEthereumNews.com.
The Japanese Yen (JPY) recovers slightly after touching a fresh low since February 13 against a broadly firmer US Dollar (USD) during the Asian session on Friday, though the upside potential seems limited. Market participants have been speculating that Sanae Takaichi will introduce more fiscally expansive policies following an unexpected result from the ruling Liberal Democratic Party’s (LDP) leadership election last Saturday. This could further delay the Bank of Japan’s (BoJ) tightening plan, which, in turn, has been a key factor behind the JPY’s slump since the beginning of this week. However, bets for another interest rate hike by the BoJ this year remain on the table amid sticky inflation and economic resilience. This, along with a softer tone around the equity markets, is seen offering some support to the safe-haven JPY. The USD, on the other hand, consolidates its strong weekly gains to the highest level since early August and contributes to capping the USD/JPY pair. Nevertheless, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that the JPY has bottomed out in the near term and placing bullish bets. Bears retain control as Takaichi’s policies could delay BoJ rate hikes Concerns over Japan’s fiscal health grew, and expectations for an immediate interest rate hike by the Bank of Japan dimmed after Sanae Takaichi’s surprise win in the ruling Liberal Democratic Party’s (LDP) leadership race last Saturday. The outcome puts her on course to become the country’s first female Prime Minister and fueled speculations about more expansionary fiscal policy. Takaichi is seen as a supporter of the former Premier Shinzo Abe’s economic policies, who advocated for heavy spending and monetary stimulus to support the Japanese economy. Takaichi is also expected to oppose any further policy tightening by the BoJ, which, in turn, has…
Filed under: News - @ October 10, 2025 3:27 am