Yen slips to 2-week low as Takaichi wins election
Business
Japan's yen slipped to a two-week low right after Sanae Takaichi won Sunday's lower house election, giving her party and allies a supermajority in the lower house.
This win is expected to boost government spending and ease some of the political uncertainty in Japan.
Key question now is whether risks are reinforced or unwind
Analysts say all eyes are now on how the new government will handle its spending plans.
Shoki Omori, chief desk strategist for rates and FX at Mizuho in Tokyo, said "Risks from fiscal expansion had already been largely priced in before the election" and that "The key question now is whether those risks are reinforced or gradually unwind."
Meanwhile, the US dollar stayed steady as everyone waits for fresh economic updates and possible Fed moves next month.