"Yen Weakens" on Expectations of Takaichi Taking Power
The yen-dollar exchange rate fell to its lowest level in eight months on October 8, with the rate surpassing the 152-yen mark during intraday trading.
As of 3:50 p.m. that day, the yen-dollar exchange rate stood at 152.3 yen per dollar on the Tokyo foreign exchange market, up 1.16% from the previous trading day's closing price.
This marks the first time since mid-February, roughly eight months ago, that the value of the yen has dropped to the 152-yen range against the dollar.
This development is attributed to expectations that Sanae Takaichi, the Liberal Democratic Party leader who supports 'Abenomics' and opposes interest rate hikes, will take power.
During last year's party leadership election, Takaichi made her opposition to a rate hike by the Bank of Japan clear, stating, "I think it would be foolish to raise interest rates now."
Immediately after her election as Liberal Democratic Party leader on October 4, she also commented on the Bank of Japan's monetary policy, saying, "Whether it is fiscal policy or monetary policy, it is the government that bears responsibility," and added, "If prices have risen for two consecutive years, I already consider that inflation."
Following her election as party leader, the yen-dollar exchange rate has been trending upward, and Japanese stock prices have also continued to rally.
However, on this day, the Nikkei 225, Japan's leading stock index, closed at 47,734, down 0.45% from the previous day.
This is seen as a result of growing caution in the market due to the recent rapid surge.
The Nikkei 225 had ended the previous day at 47,950, marking a record closing high for the third consecutive trading day. At one point during intraday trading, it also reached an all-time high of 48,527.
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