The Japanese yen was trading at around 153 per dollar on Tuesday, lingering near three-month lows and facing pressure from policy uncertainties after Japan’s ruling coalition lost its parliamentary majority in the weekend elections.
Yen nears three-month lows amid political turmoil
This political upheaval complicates the Bank of Japan's efforts to normalize monetary policy following years of stimulus. The head of the Democratic Party For People remarked that the BOJ should refrain from significant policy shifts as real wages remain stagnant. Additionally, the yen's weakness prompted Finance Minister Katsunobu Kato to stress that authorities closely monitor foreign exchange fluctuations.
Yen weakness raises intervention concerns amid strong dollar
Concerns are rising that a further drop to the 160 level could increase the likelihood of currency intervention. The yen also faced external pressure from a strong dollar, fueled by expectations of more cautious rate cuts from the Federal Reserve and speculation that Trump may win in November.
