Stock Market Live Update: Sane Takichi’s victory increased the possibility of softening in Japan’s physical policy, the biggest decline of 5 months seen in Yen
In Japan, the country’s ruling Liberal Democratic Party (LDP) has chosen Sane Takichi as its new leader at the end of the week. After which on Monday, the yen was the biggest decline in 5 months against the US dollar in early trade. This increased the possibility of adopting a more expansionist fiscal policy in the country and the challenge in front of Bank of Japan became more complicated. Yen fell 1.5% to 149.73 yen per dollar, which is the biggest decline in one day since May 12. This also ended the growth of business in Asian markets last week.
The Japanese currency fell by 1.3% to 175.39 yen per dollar against the euro, which is close to its lowest level since the creation of the European single currency.
Due to the closure of several market holidays in Asia, the dollar index was last at 98.073, which reflects some recent decline. This year the dollars have been consistently weakened by their major counterparts, as traders are trying to assess the economic impact of attacks on US President Donald Trump’s policies and Federal Reserve’s freedom.