'Japanese Ruling Party Landslide Victory' Election Results Trigger Yen Selling... Approaching 140 Yen per Dollar

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Following news of a landslide victory for the ruling party in Japan's House of Councillors election, the selling pressure on the yen has accelerated. Bloomberg News interpreted that investors view this election result as a referendum on Japan's monetary easing policy.

According to the news agency, on the 11th (local time), the yen fell 0.9% against the dollar, breaking through 137 yen. The value per dollar is approaching 140 yen, plunging to its lowest level in 24 years. This came after the ruling party's landslide victory in the House of Councillors election, when BOJ Governor Haruhiko Kuroda announced that he would not hesitate to implement monetary easing measures if necessary to stimulate the stagnant economy.

Jun Taro Morimoto, an analyst at Sony Financial Group, explained, "The election result reflects public support for Prime Minister Fumio Kishida and clearly indicates that rising inflation in Japan is not as important to the public as it is overseas." He added, "It is highly likely that the current accommodative monetary policy stance will be maintained during Governor Kuroda's term, which I believe strengthens the yen selling by reducing expectations for policy adjustments."

Despite major countries consecutively tightening policies to combat inflation, the Bank of Japan has kept interest rates at rock-bottom levels, causing the yen to depreciate more than 16% against the dollar so far this year.

This content was produced with the assistance of AI translation services.