Japanese yen sinks to 18-month low as uncertainty grows
The Japanese yen just dropped to its lowest point in a year and a half, trading at 159.45 per US dollar on Wednesday.
Weak demand for bonds and talk of snap elections in Japan have investors worried, sparking fears that Tokyo might step in to steady things.
Even a warning from Finance Minister Satsuki Katayama that officials would take "appropriate action against excessive foreign exchange moves without excluding any options" only gave the yen a brief lift before it slid again.
What's driving the drop?
Speculation about early elections by Prime Minister Sanae Takaichi—and possible increases in public spending—are making markets jittery.
Rising tensions between China and Japan over Taiwan are adding to the uncertainty.
Meanwhile, the US dollar is holding strong as traders wait for signals from the Federal Reserve, keeping everyone on their toes about what comes next.