07:38
Dutch International: The results of the Japanese Senate election increase uncertainty for the yen.
Jin10 data reported on July 21, the strategist from ING stated that the results of the Japanese Senate election have made the outlook for the yen more uncertain. Although Japanese Prime Minister Shinzo Abe has promised to remain in office and continue to promote negotiations on the US-Japan trade agreement, the opposition party may seek to gain political benefits by advocating for loose fiscal policies to address livelihood pressures. The strategist pointed out that these expectations have already put pressure on Japanese government bonds before the election, creating unfavourable information for the yen. Additionally, there is a risk that Shinzo Abe could be replaced by a more conservative faction, which may call for the Bank of Japan to slow down the pace of interest rate hikes. "In other words, today's rise of the yen lacks clear support," the strategist added.

