Overview

• The Tokyo market opened with the yen at ¥149.58–¥149.59 per dollar at 9 a.m., about ¥2.18 weaker than the prior week’s close.
• The euro traded at ¥175.17–¥175.21, reflecting a ¥2.23 weekly drop in the yen versus the common currency.
• Market participants linked the move to expectations that the new leadership will pursue more expansionary fiscal measures.
• Sanae Takaichi has emphasized the importance of monetary easing, which traders say raises the hurdle for further BOJ rate hikes.
• Before the leadership result, many had expected the Bank of Japan to raise rates at its Sept. 29–30 policy meeting.