FX.co ★ Yen Hovers Near 9-Month Low

The Japanese yen edged closer to 154.5 per dollar on Wednesday, nearing nine-month lows as optimism surrounding a potential reopening of the US government reduced the demand for this safe-haven currency. Japanese Prime Minister Sanae Takaichi recently indicated plans to establish a new multi-year fiscal target to permit greater flexibility in spending, reinforcing expectations of fiscal expansion under the new leadership. Additionally, she advised the Bank of Japan to tread carefully regarding interest rate increases, despite indications that many policymakers are inclined toward resuming monetary tightening sooner. In its October Summary of Opinions, the BOJ highlighted that officials are keeping a close watch on domestic wage trends ahead of any forthcoming rate decisions. Meanwhile, Economic Revitalization Minister Minoru Kiuchi expressed concern that a weaker yen might elevate consumer prices by increasing import costs, signaling the need for vigilant monitoring.