The yen fluctuated as Japan’s ruling Liberal Democratic Party secured a two-thirds super majority in the lower house election. Concerns about overspending led to pressure on the yen and government bonds. Expectations of proactive fiscal policy may lead to further yen selling, potentially pushing it to intervention levels.

Finance Minister Katayama will communicate with markets if needed. A weakening yen is raising expectations for a Bank of Japan rate hike by April. Reports of Fed rate checks initially strengthened the yen, but Bessent’s denial of intervention caused it to weaken again. Takaichi’s comments on exports contributed to the yen’s decline.

Read more at Yahoo Finance: Yen Fluctuates as Japan’s Takaichi Set for Landslide Vote Win