The Japanese yen weakened sharply, losing 3.7% against the US dollar to hit 153.00 following the election of fiscal and monetary dove Sanae Takaichi, expected to become Japan’s next prime minister. The move, dubbed the “Takaichi Trade,” has softened expectations of a near-term BoJ rate hike. However, improving consumer confidence, an upward-trending policy rate curve, and a narrowing US-Japan yield spread suggest the yen’s weakness may be short-lived.
09-10-2025 06:12 GMT
by Kelvin Wong