The dollar ascended against the yen on Monday, reflecting shifts in investor focus towards political developments in Japan and the eurozone. This comes as U.S. credit risk concerns continue to linger, weighing on market sentiment. The yen weakened, driven by the anticipated premiership of conservative Sanae Takaichi.
Takaichi’s prospective coalition with Japan’s right-wing party has raised apprehensions about possible fiscal expansions, potentially affecting the Japanese currency’s strength. Market analyst Lee Hardman highlighted the moderately expansionary nature of the coalition’s fiscal plans, prompting investors to watch closely.
Meanwhile, the euro managed a slight gain against the dollar amid easing tensions in France. However, the lingering uncertainty in budget talks keeps the euro’s strength in check. The dollar index gained marginally, reflecting ongoing resilience amid global economic uncertainties.
