Sanae Takaichi became Japan’s first female prime minister, triggering yen decline due to expected stimulus and delayed rate hikes.

Sanae Takaichi was elected Japan’s first female prime minister, prompting the yen to weaken to 151.38 per dollar amid expectations of fiscal stimulus and delayed monetary tightening. Her coalition with the right-wing Ishin party and dovish economic stance may limit the Bank of Japan’s ability to raise rates. While finance minister Satsuki Katayama’s preference for a stronger yen could help stabilize the currency, market reactions remained modest ahead of the Federal Reserve’s policy meeting. The dollar gained on yen weakness, while other major currencies saw minor shifts.