Yen sinks near 150 as markets bet on looser fiscal stance

The yen slumped nearly 2% to 149.97 per dollar on Monday, marking its sharpest fall in five months, after Sanae Takaichis LDP leadership win fueled expectations of a more expansionary fiscal stance. Her call for closer coordination between the government and the Bank of Japan reinforced bets on continued policy support to drive demand-led inflation and wage growth. With several Asian markets closed for holidays, the dollar index hovered near 97.8, paring recent losses. The greenback has been under pressure this year as investors weigh the economic fallout of President Trumps policies and his ongoing criticism of the Federal Reserves independence.

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