Yen jumps nearly 1% on growth hopes and softer dollar

The Japanese yen strengthened nearly 1% to above 153 per dollar on Wednesday, marking its third consecutive session of gains. The move was driven by optimism around Prime Minister Sanae Takaichis policy agenda, which investors believe could support economic growth and give the Bank of Japan greater flexibility to raise interest rates. Following her decisive election victory, Takaichi outlined plans for higher fiscal spending, tax cuts, and a temporary suspension of the food sales tax, easing near-term inflation pressures. Markets also drew support from speculation that Japanese authorities may intervene to limit excessive currency weakness, while a softer US dollarafter weak economic data revived expectations of Federal Reserve rate cutsfurther lifted the yen.

Powered by Capital Market - Live News