Yen Hits Two-Week Low After Japan's Liberal Democratic Party Landslide Win
February 9, 2026
The Japanese yen slid as much as 0.3% to 157.72 against the US dollar. This marked its seventh straight day of decline and the lowest level in two weeks. The drop followed the Liberal Democratic Party’s (LDP) huge election win. LDP leader Takaichi is expected to claim up to 328 of 465 lower house seats. Along with its coalition partner, the Japan Innovation Party (Ishin), they hold a supermajority. This lets them push laws without approval from the upper chamber, which they do not control.
Shoki Omori, chief strategist at Mizuho in Tokyo, said, "The Liberal Democratic Party's landslide victory removes political uncertainty and strengthens policy execution, but shifts market focus squarely to how fiscal policy is designed and communicated."
He added, "Risks from fiscal expansion had already been largely priced in before the election. The key question now is whether those risks are reinforced or gradually unwind."
The US dollar index, measuring the greenback against six currencies, stayed flat at 97.683. This week will bring key US data, including retail sales, inflation, and a delayed jobs report. Against the Chinese yuan offshore in Hong Kong, the dollar was steady at 6.93 yuan. The Australian dollar rose 0.2% to $0.7028, New Zealand dollar edged up 0.1% to $0.6026, and the euro held steady at $1.1819.
Cryptocurrencies slipped, with Bitcoin down 0.6% to $70,223.86 and Ether down 0.3% to $2,086.73.
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Tags:
Yen
Japan
Liberal democratic party
Election
Fiscal Policy
Forex
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