FX.co ★ Japanese Yen Slips on Political Uncertainty

On Wednesday, the Japanese yen weakened to approximately 147 per dollar, ending a two-day upward trend as political uncertainty affected market sentiment. Speculation arose that Prime Minister Shigeru Ishiba might resign soon, despite the announcement of a new trade agreement with the United States. Ishiba refuted these rumors, stating he had never entertained discussions about stepping down. Investor concerns about leadership stability intensified after the ruling coalition lost its majority in the upper house during weekend elections. Adding to market fluctuations, U.S. President Donald Trump revealed a trade agreement with Japan, which includes a 15% tariff on Japanese exports. Furthermore, Japan is set to invest $550 billion into the U.S. and will open its markets to significant American goods. Although Ishiba confirmed his briefing on the agreement, he did not provide details and emphasized his dedication to safeguarding the "national interest."