Japanese Yen Hits 18-Month Low Amid Election Speculation and Intervention Concerns

The Japanese yen fell to an 18-month low amid rising tensions with China over Taiwan and speculation of a snap election by Prime Minister Sanae Takaichi, which could lead to increased fiscal stimulus and public spending. Market concerns over Japan's fiscal outlook and political uncertainty have intensified, prompting verbal warnings from Finance Minister Satsuki Katayama about possible currency intervention. The dollar remained strong against major currencies, while investors await clearer signals on Japan's fiscal and monetary policies.