Yen Sinks After Takaichi’s LDP Win, Touches Mid-¥149 and Euro-Era Low
Investors linked the drop to expectations that a pro‑spending agenda will follow Takaichi’s victory.
Overview
- In early Oceania trading on Oct. 6, the yen weakened to around ¥149.5 per dollar following reports of the LDP leadership result.
- By 10 a.m. in Tokyo, the dollar traded at ¥149.70–¥149.71 and the euro at ¥175.39–¥175.45, marking the weakest yen against the euro since its 1999 launch.
- The slide extended a move of more than ¥2 against the dollar compared with Friday’s New York close, according to wire reports.
- Market participants attributed the selling to expectations for aggressive fiscal policy under Sanae Takaichi, with pressure evident across yen crosses.
- A sharp rally that lifted the Nikkei above 47,000 encouraged risk-taking and reduced demand for the currency viewed as a haven.