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Japanese Yen Likely to Fall if LDP Secures Majority in Election -- Market Talk

Dow Jones
Jan 15

1451 GMT - The Japanese yen faces renewed falls if Prime Minister Sanae Takaichi's ruling Liberal Democratic Party secures a majority in the Lower House in a snap election, TD Securities strategists say in a note. "A strong public mandate may embolden Takaichi to opt for more aggressive fiscal policies in the eyes of investors." This could send the dollar above 162 yen from 158.74 currently, they say. While Japan could intervene to shore up the yen as the dollar approaches 160 yen, the success of such moves probably depends on whether it's accompanied by credible restrictive monetary policy action, they say. The bar for aggressive rate rises is much higher under Takaichi and with rates already in positive territory, they say. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

January 15, 2026 09:51 ET (14:51 GMT)

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