Yen weakens on large stimulus bets

The Japanese yen slipped past 152 per dollar on Thursday, approaching an eight-month low amid rising expectations that new Prime Minister Sanae Takaichi will announce a large-scale stimulus package as soon as next month.

Reports suggest the plan could surpass last year’s ¥13.9 trillion program, which was designed to ease inflationary pressures on households.

Takaichi, who officially took office on Tuesday, is expected to favor expansionary fiscal policies while maintaining monetary accommodation in coordination with the Bank of Japan (BOJ).

The central bank is widely expected to hold interest rates steady next week, with markets now anticipating the next rate hike in January.

In addition, traders kept a close eye on U.S.–China trade developments after reports surfaced that Washington may restrict exports to China involving U.S. software.

President Donald Trump later said his meeting with Chinese President Xi Jinping is “scheduled,” helping to ease market concerns about escalating trade tensions.