The yen extended a string of recent losses in early Asian trading Monday after Japanese Prime Minister Sanae Takaichi swept to victory in Sunday’s election, easing the path to further fiscal stimulus.
The yen slid as much as 0.3% to 157.72 yen against the dollar, its seventh consecutive day of decline, to reach its weakest level in two weeks.
Takaichi is projected to deliver as many as 328 of the 465 seats in parliament’s lower house for her Liberal Democratic Party.
Alongside her coalition partner, the Japan Innovation Party, known as Ishin, Takaichi now \u200dhas a supermajority of two-thirds of seats, allowing her to override the upper chamber, which she does not control.
“The Liberal Democratic Party\u2019s landslide victory removes political uncertainty and strengthens policy execution, but shifts market focus squarely to how fiscal policy is designed and communicated,” said Shoki Omori, chief desk strategist for rates and FX at Mizuho in Tokyo.
“Risks from fiscal expansion had already been largely priced in before the election,” he added.
“The key question now is whether those risks are reinforced or gradually unwind.<\/p>\n","protected":false},"excerpt":{"rendered":"
The yen extended a string of recent losses in early Asian trading Monday after Japanese Prime Minister Sanae Takaichi swept to victory in Sunday’s election, easing the path to further fiscal stimulus.The yen slid as much as 0.3% to 157.72 yen against the dollar, its seventh consecutive day of decline, to reach its weakest level […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-36478","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n