FX.co ★ Yen Slips Ahead of Parliamentary Vote

The Japanese yen edged closer to 151 per dollar on Tuesday, marking its third consecutive decline as investors anticipated the parliamentary vote set to confirm Sanae Takaichi as Japan's forthcoming prime minister. The dominant Liberal Democratic Party has forged a coalition with the Japan Innovation Party, both committed to promoting expansionary fiscal policies and implementing spending reforms. Nonetheless, doubts remain regarding the coalition's stability and whether Takaichi might adopt more stringent policies. The partnership with Ishin could potentially endorse a more balanced economic and monetary strategy. In parallel, Bank of Japan board member Hajime Takata noted on Monday that conditions were favorable for an interest rate hike, offering some bolstering to the yen. Investors are now shifting their attention to the BOJ meeting scheduled for next week, where it is widely anticipated that policymakers will maintain the current interest rates.