FX.co ★ Japanese Yen Edges Up after Komeito Leaves Ruling Coalition

The yen regained some ground, trading around 152.7 on Friday after briefly hitting 153.2 earlier in the session. This fluctuation came in the wake of reports that the Komeito Party's leader informed the head of the Liberal Democratic Party (LDP) of Komeito's decision to exit the ruling coalition. This decision was made after newly elected LDP President Sanae Takaichi was deemed to have inadequately addressed issues concerning political funding. This partnership dissolution marks the end of a 25-year alliance, which Takaichi had newly emphasized as "fundamental." The breakup of the coalition has amplified political uncertainty and raised concerns over the feasibility of increased fiscal spending under the new leadership, a key element that has pressured the yen this week. Despite Friday’s recovery, the yen closed the week down by 3.6%, marking a seven-month low.