Yen Slides to Record Low Against Euro
The Japanese yen dropped to a record low against the euro and hovered near a nine-month low versus the U.S. dollar on Thursday. The fall came after Japan’s new Prime Minister, Sanae Takaichi, signaled her preference for the Bank of Japan (BOJ) to move slowly on raising interest rates.
The euro held steady at $1.1590, while the yen weakened toward 155 per dollar, prompting new warnings from Japan’s finance ministry.
Takaichi Urges Caution on Rate Hikes
Prime Minister Sanae Takaichi said her administration wants interest rates to stay low to support economic growth. She also requested BOJ Governor Kazuo Ueda to provide regular updates to the government’s Council on Economic and Fiscal Policy.
Finance Minister Satsuki Katayama issued another warning over the yen’s weakness, calling the currency’s rapid moves “one-sided and concerning.”
Economist Norihiro Yamaguchi from Oxford Economics said the yen’s decline could pressure the government to eventually support a rate hike.
“The exchange rate is crucial to the survival of the administration,” Yamaguchi said.
Traders now see a 24% chance of a BOJ rate hike in December, rising to 46% by January.
Australian Dollar Gains on Strong Jobs Data
In contrast, the Australian dollar rose to a two-week high, reaching $0.6565, after data showed a sharper drop in unemployment than expected. Employment surged in October as firms hired more full-time workers, easing concerns over a slowdown.
Economists said the figures reduce the chances of further interest rate cuts by the Reserve Bank of Australia (RBA).
“Labour market conditions remain a little tight,” analysts at ANZ wrote.
Traders now expect the RBA to keep policy steady next month, with a potential final rate cut in February 2026.
Global Market Overview
The British pound edged lower to $1.3123 ahead of UK GDP data, following reports of internal political tensions around Prime Minister Keir Starmer.
With Japan urging patience on rate policy and Australia signaling strength, global investors are watching closely as currency volatility continues to shape financial markets.
