04.11.202602:58:23UTC+00Yen Strengthens as US Dollar Weakens

The Japanese yen strengthened toward 157.5 per dollar on Wednesday, snapping a two-day losing streak as the US dollar came under heavy pressure. The move followed early election polls in the United States that pointed to a possible Democratic takeover of both chambers of Congress, intensifying political uncertainty. A potential Democratic sweep has stoked concerns over tighter AI regulation and stronger corporate oversight, developments that investors fear could dampen the US growth outlook.

The yen also drew support from safe-haven demand, alongside government bonds, as technology and artificial intelligence stocks came under renewed selling pressure. At the same time, market participants are awaiting Japan’s wage data, due later this week, for further signals on the Bank of Japan’s policy trajectory.

Last week, the BOJ left its benchmark interest rate unchanged at 1.25% but noted that underlying inflation has reached its 2% target, a shift that could open the door to another rate hike as early as December.