Japan's New Prime Minister Expected to Stabilize Yen Amid Political Changes

According to BlockBeats, Singapore's OCBC Bank foreign exchange strategist Christopher Wong stated that the election of Sanae Takaichi as Japan's Prime Minister was anticipated following the agreement of the Japan Restoration Party to form a coalition government. The fiscal prudence demonstrated by the coalition between the Liberal Democratic Party and the Japan Restoration Party is expected to reassure both the market and the yen. This development is unlikely to mirror the dollar/yen movements seen after previous Liberal Democratic Party elections, as the coalition government may require Takaichi to adjust her previously pro-stimulus policy stance. Additionally, the macroeconomic environment may allow for policy normalization, potentially reducing political uncertainty and paving the way for the Bank of Japan to raise interest rates on October 30.