The Japanese yen slipped toward 153 per dollar on Monday, nearing its weakest level since February as expectations of aggressive fiscal expansion under the new government and uncertainty over the Bank of Japan’s policy outlook weighed on the currency. The yen has declined sharply this month following the election of Prime Minister Sanae Takaichi, who is expected to implement expansionary fiscal measures and support loose monetary settings. Reports suggest she may unveil a major stimulus package as soon as next month, potentially exceeding last year’s 13.9 trillion yen program aimed at easing inflationary pressures on households. Meanwhile, the BOJ is widely expected to keep rates steady this week, though policymakers are set to debate the conditions for resuming rate hikes as tariff-related risks ease. Investors also await Takaichi’s meeting with US President Donald Trump this week for additional policy signals.
