The value of the yen against the dollar (yen/dollar exchange rate) traded in the 152-yen range during the session on the 8th, falling to an eight-month low. The yen is weakening as it is expected that Liberal Democratic Party President Takaichi Sanae, who supports "Abenomics" and has taken a stance opposing interest rate hikes, will take power.
As of 6 p.m. that day, the yen/dollar exchange rate was in transaction at 152.8 yen per dollar on the Tokyo foreign exchange market. It has been about eight months since the yen fell into the 152-yen-per-dollar range, the first time since mid-Feb.
Takaichi is expected to take office as Japan's first female prime minister after a parliamentary prime ministerial nomination vote in mid-month.
Takaichi is regarded as a supporter of "Abenomics," which is based on monetary easing, to the extent that she has clearly expressed opposition to the Bank of Japan's interest rate increases. During the party presidential election last year, Takaichi said, "I think it's foolish to raise rates now."
"Abenomics" refers to the economic policy pursued by Prime Minister Abe Shinzo since 2012, which aims to lower the value of the yen to boost export competitiveness.
On the 4th, immediately after winning the Liberal Democratic Party presidency, she also said regarding the Bank of Japan's interest rate policy, "Whether it's fiscal policy or monetary policy, it is the government that bears responsibility. If prices have risen for two consecutive years, I already think it is inflation."
Meanwhile, Japanese stocks are on the rise. On the day, the Nikkei 225 average stock price (hereinafter the Nikkei index), Japan's benchmark stock index, closed at 47,734, down 0.45% from the previous day. This appears to be due to caution spreading through the market after a short-term surge.
The Nikkei index closed at 47,950 the previous day, setting an all-time closing high for the third straight trading day.