Japanese Yen May Weaken Further if Ruling Party Wins Election, Says Commerzbank

On February 3, Commerzbank's Volkmar Baur reported that the Japanese yen might weaken further if the ruling Liberal Democratic Party, led by Sanae Takaichi, secures a majority in the upcoming Sunday election. According to Jin10, Takaichi's decision to hold the election could prove beneficial, as polls indicate a potential landslide victory for her party. During her campaign, Takaichi highlighted the positive aspects of a weaker yen, although she later clarified that it was not a policy objective. However, Baur noted that her initial comments seem to have had a lasting impact on the exchange rate.