Yen soars on election win, hits strongest since November 2024
The Japanese yen jumped nearly 3% against the US dollar this week—its strongest showing since November 2024.
The surge came right after Prime Minister Sanae Takaichi's party scored a big election win, sparking hopes for more government spending and tax breaks without piling on debt.
A stronger yen means better deals for travelers and importers
A stronger yen can mean better deals for travelers and importers, but it also signals that global investors are feeling good about Japan's economy.
Takaichi's victory has people expecting growth and maybe even higher interest rates from Japan's central bank.
Some local brokers expect about ¥10 trillion to head to Japanese stocks over the next three months.
Japan's economy is sending out positive vibes
Japan's economy is sending out positive vibes: machine tool orders rose 25.3%, and the country posted a hefty current account surplus.
Top officials have also spoken up to support the yen, while financial markets are showing less worry about government debt after the election.