FX.co ★ Japanese Yen Slips on Political Uncertainty

The Japanese yen edged closer to 149 per dollar on Wednesday, reaching its lowest point in a month amid political instability that exerted pressure on the currency. Hiroshi Moriyama, secretary general of the ruling party and a close ally of Prime Minister Shigeru Ishiba, announced his intention to resign. This development has intensified speculation regarding Ishiba's position, especially as demands for his resignation increase following an electoral defeat. Sanae Takaichi, a prominent potential successor, is viewed as favoring policies with low interest rates. Concurrently, Ryozo Himino, Deputy Governor of the Bank of Japan, reiterated on Tuesday the necessity for the central bank to continue its gradual interest rate hikes. However, he emphasized that significant global risks persist, indicating there is no immediate need for aggressive monetary tightening. Investors are now focused on this week's upcoming wage data for more insights into the potential direction of monetary policy.