Japan's yen soars over 2.6% against US dollar
Japan's yen just shot up over 2.6% against the US dollar after Prime Minister Sanae Takaichi's Liberal Democratic Party (LDP) scored a big election win.
The yen traded at 153.05 per dollar on Thursday, while the US dollar index slipped by 0.8% this week.
Foreigners are buying both stocks and bonds
This jump in the yen shows investors trust Japan's direction after the LDP victory, leading to more interest in Japanese stocks and bonds.
As Nomura strategist Naka Matsuzawa puts it, "Foreigners are buying both stocks and bonds."
Plus, with a weaker US dollar globally, currencies like Australia's and China's yuan are also getting a boost—making things interesting for anyone watching international markets.
Asia's currency movements
Stronger-than-expected US job data and steady global growth have been interpreted by traders as a cue for brighter global growth, prompting some to lay bets on Japan.
At the same time, China saw booming exports, and corporate demand ahead of the Lunar New Year holiday helped the yuan, and Australia is eyeing interest rate hikes due to inflation worries—so there's a lot happening across Asia that's shaping how money moves right now.