Japanese Yen Weakens as Political Uncertainty Resolves

2025-10-20 09:31

The Japanese yen weakened against major G10 and Asian currencies as political uncertainty in Japan eased. Analysts from CBA's Global Economics and Markets Research team reported that a coalition government between the Liberal Democratic Party (LDP) and the New Party is likely to be confirmed today. This coalition is just two seats short of a majority in the lower house, suggesting a stable government formation. The New Party's support enhances the prospects of LDP leader Sanae Takaichi becoming the next prime minister.

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