The Japanese yen strengthened toward 151 per dollar on Wednesday, rising for the second straight session as markets remain uncertain whether ruling Liberal Democratic Party leader Sanae Takaichi will become the next prime minister following the coalition split with the Komeito party. Takaichi, who is known for supporting Abenomics-style expansionist policies, spurred bets on increased fiscal spending and loose monetary policy, typically weighing on the yen while boosting equities. Opposition parties are also holding talks today to secure enough backing to form a new government. Meanwhile, the yen drew additional support from safe-haven demand amid escalating US-China tensions, after President Trump threatened Beijing with a cooking oil embargo in response to China’s soybean boycott.
