Japanese Yen Retreats on Soft GDP Print

2026-02-16 01:15 By Jam Kaimo Samonte 1 min. read

The Japanese yen weakened past 153 per dollar on Monday, trimming last week’s gains after Japan’s fourth-quarter 2025 growth came in well below expectations.

The economy expanded 0.1% QoQ in Q4, rebounding from a 0.7% contraction in Q3 but missing forecasts for a 0.4% increase.

Consumer spending, the largest component of GDP, rose just 0.1%, highlighting subdued domestic demand as households continued to grapple with elevated inflation.

Prime Minister Sanae Takaichi recently reaffirmed her commitment to supporting growth through proactive fiscal measures following her landslide victory in the Feb. 8 Lower House election.

Meanwhile, the yen had rallied nearly 3% last week, marking its strongest weekly performance since November 2024, on expectations that Takaichi’s fiscal expansion plans could lift growth without placing undue strain on public finances.

Bets on further rate hikes by the Bank of Japan and concerns over possible currency intervention also lent support to the currency.



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