Yen slips near 157 as fiscal concerns and Fed outlook support dollar

The Japanese yen slipped toward 157 per dollar in electronic trading on Thursday, hovering near its weakest level in almost two weeks as concerns mounted over Japans fiscal outlook under Prime Minister Sanae Takaichis expansionary spending plans. With snap elections scheduled for Sunday, expectations that the ruling Liberal Democratic Party may gain more seats have raised fears of increased debt-funded spending, weighing on the currency. Meanwhile, the dollar remained firm after US President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair. Hopes that Warsh may favor maintaining higher interest rates boosted the greenback, adding further pressure on the yen in the near term.

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