Yen slides past 156 ahead of Japan's snap election

The Japanese yen slipped past 156 per dollar, extending its decline to a fourth straight session as markets brace for Japans snap lower house election. Expectations that Prime Minister Sanae Takaichis LDP will expand fiscal spending and cut taxes have weighed on the yen and Japanese bonds, reviving concerns over debt-funded growth. Despite this weeks weakness, the yen has still gained over 1% in January, supported by rising global risk aversion that has periodically unwound carry trades. Meanwhile, the US dollar index hovered near 97.2, pausing its recent rally as a partial government shutdown delayed key labor market data, leaving investors cautious about the near-term outlook for the US economy.

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