Yen Declines After Takaichi's Election Win

(RTTNews) - The Japanese yen declined against other major currencies in the Asian session on Monday, after fiscal dove, Sanae Takaichi was elected to lead the ruling Liberal Democratic Party (LDP).

As Japan's first female prime minister, Takaichi is anticipated to argue against any more monetary tightening by the Bank of Japan (BoJ).

A major factor affecting the JPY is the expectation of further stimulus, which may cause the Bank of Japan (BoJ) to postpone rising interest rates.

Investors ponder over the potential impact of U.S. President Donald Trump's tariff policies and attacks on the independence of the Federal Reserve.

Market attention in the week ahead will largely be fixed on the earnings calendar along with scheduled address from several Federal Reserve officials, including Fed Chair Jerome Powell.

In the Asian trading today, the yen declined to a 33-year low of 176.24 against the euro and a record low of 188.88 against the Swiss franc, from last week's closing quotes of 172.42 and 185.41, respectively. If the yen extends its downtrend, it is likely to find support around 178.00 against the euro and 190.00 against the franc.

Against the pound and the U.S. dollar, the yen slipped to more than a 1-year low of 202.18 and more than a 2-month low of 150.34 from Friday's closing quotes of 198.77 and 147.45, respectively. The yen is likely to find support around 205.00 against the pound and 152.00 against the greenback.

Against the Australia, the New Zealand and the Canadian dollars, the yen slipped to nearly an 11-month low of 99.30, nearly a 3-week low of 87.71 and a 1-month low of 107.77 from last week's closing quotes of 97.39, 86.00 and 105.70, respectively. On the downside, 100.00 against the aussie, 88.00 against the kiwi and 108.00 against the loonie are seen as the next support levels for the yen.

Looking ahead, Construction PMI reports from various European economies and U.K. for September, Eurozone Sentix investor confidence for October and Eurozone retail sales for August, are slated for release in the European session.

In the New York session, U.S. Consumer Board's employment trends index for September is due to be released.