# yen
Latest news and articles about yen
Total: 4 articles found
Japan’s Big Gamble: Takaichi’s Fiscal Blitz Risks a ‘Truss Moment’ as Debt and Supply Chains Bite
Sanae Takaichi’s electoral win paves the way for ambitious fiscal stimulus, defence spending and a temporary cut to food consumption tax, moves that have boosted equities but raised alarms about Japan’s ability to finance such a course. With public debt near 230% of GDP and heavy dependence on foreign and Chinese processing capacity for strategic minerals, Tokyo faces a high-stakes test of credibility that could spill across bond, currency and commodity markets.
Takaichi’s Electoral Mandate Fuels Fiscal Boldness — and Fresh Downward Pressure on the Yen
Prime Minister Sanae Takaichi’s governing coalition won a decisive lower-house majority, clearing the path for expansionary fiscal measures such as cuts to the food consumption tax and a new sovereign wealth fund. Markets have swiftly priced in a higher probability of yen weakness and a Japanese equity rally, while analysts warn that persistent fiscal loosening could exacerbate sovereign-financing pressures and elevate the risk of market intervention if the currency weakens beyond key thresholds.
A Rare Step: U.S. and Japan Signal Joint Action to Stop the Yen’s Slide — Why Markets Are on Alert
Japan’s struggle between a collapsing yen and fragile government bond market prompted an unusually visible New York Fed ‘rate check’ at the U.S. Treasury’s direction, a signal markets read as readiness for coordinated U.S.-Japan intervention. The episode highlights Tokyo’s dilemma and could reshape dollar dynamics, Treasury demand and regional risk sentiment if followed by real onshore action.
Tokyo Signals Action as Markets Bet on U.S.–Japan Co‑ordination to Support the Yen
Japan’s prime minister warned of decisive action after the yen reversed sharply, a move traders linked to a New York Fed inquiry that many read as a precursor to coordinated U.S.–Japan intervention. While coordination could calm markets in the short term, analysts say it would not resolve the deeper fiscal and bond market imbalances that are driving yen weakness.