Yen stuck near 158 per dollar amid fiscal concerns

The Japanese yen hovered around 158 per dollar, struggling for direction as Prime Minister Sanae Takaichis proposed cut to the 8% food sales tax revived worries over Japans fiscal outlook, with funding details still unclear. Political uncertainty deepened after the announcement of a Feb. 8 snap election, while markets looked ahead to the Bank of Japans policy meeting, where rates are expected to remain unchanged following Decembers hike. Although traders remained alert to the risk of yen intervention amid inflation concerns, losses were partly offset by a softer US dollar as escalating USEurope tensions over Greenland undermined confidence in American assets. The dollar index traded at 98.4 against the basket of 6 other currencies.

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