The yen strengthened past 151 per dollar on Thursday, rising for the third straight session as the path for Liberal Democratic Party leader Sanae Takaichi to become the next prime minister remains highly uncertain following the coalition breakup with the Komeito party last week. The ruling party proposed holding a leadership vote on Oct. 21, though opposition parties have not yet agreed to the date. Traders who previously shorted the yen on expectations that Takaichi would pursue aggressive fiscal spending and continued monetary accommodation have since reversed those positions amid growing political uncertainty. Meanwhile, Bank of Japan board member Naoki Tamura cautioned against tightening policy too soon, stressing the need to avoid a return to stagnant prices and wages. Additional support came from safe-haven inflows and a weaker dollar amid escalating US-China trade tensions, the prolonged US government shutdown and dovish signals from the Federal Reserve.
