FX.co ★ Yen Weakens to 8-Month Low

The Japanese yen weakened to over 152 per dollar on Wednesday, marking a decline of more than 3% for the week and reaching its lowest point since February. This movement was attributed to unexpectedly low wage data, which diminished the likelihood of interest rate hikes by the Bank of Japan. In August, Japan's real wages fell by 1.4% compared to the previous year, marking the eighth consecutive monthly decrease as inflation outpaced wage growth. Bank of Japan Governor Kazuo Ueda recently mentioned that the central bank would consider resuming rate hikes if economic conditions and prices align with projections, although he also highlighted potential risks from U.S. tariffs. Additionally, investors are assessing Japan's political landscape following the election of Sanae Takaichi as the new prime minister. Takaichi, an ardent advocate of the expansionary "Abenomics" policies, is expected to favor substantial fiscal spending and continued monetary accommodation, which has influenced market expectations.