Yen stabilizes ahead of election amid economic concerns

The Japanese yen held steady at around 152 per dollar on Friday as investors prepared for Japan’s general election this weekend, where the coalition government may lose its parliamentary majority.

Yen stabilizes ahead of election amid economic concerns

Such an outcome could introduce political uncertainty, further complicating the Bank of Japan's plans for normalization. On the economic front, data revealed that Tokyo’s core inflation, a key indicator of national price trends, eased to a six-month low of 1.8% in October, falling short of the BOJ’s 2% target. Meanwhile, Japan’s economy minister, Akazawa, acknowledged the various impacts of a weak yen on the economy but refrained from commenting on specific foreign exchange levels.

Markets watch for Yen intervention amid strong dollar pressure

The markets remained vigilant for a potential currency intervention by authorities after the yen weakened beyond 150 per dollar. Externally, the yen continued to face pressure from a strong dollar due to expectations of more cautious rate cuts from the Federal Reserve and speculation about a potential Trump victory in November.