Yen Holds Decline Ahead of Elections

2026-02-05 01:55 By Jam Kaimo Samonte 1 min. read

The Japanese yen traded near 157 per dollar on Thursday, hovering at its weakest level in nearly two weeks and down more than 1% so far this week ahead of lower house elections this weekend.

PM Takaichi’s ruling LDP is expected to gain seats in the election as she seeks voter support for increased spending and other policy goals.

Japanese bonds and the yen have faced pressure since Takaichi took office, with her push for expansionary fiscal policies raising concerns over Japan’s debt outlook.

Investors are also looking ahead to Japan’s Q4 GDP report due next week, which is expected to rebound after a sharp contraction in the prior quarter.

Meanwhile, Takaichi suggested last weekend that a weak yen could benefit exporters, later clarifying that her comments were meant to encourage an economy resilient to currency swings.

The yen had rallied as much as 4.5% in late January amid speculation of a US-Japan joint currency intervention but has since given up more than half of those gains.



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