Yen Rises for Two Days: Is It Long-Lasting?
The Japanese yen continued to strengthen for a second day, driven by demand for safe haven assets amid US-China tensions, geopolitical turmoil, and concerns about a potential US government shutdown. Recent comments by Finance Minister Katsunobu Kato also fueled speculation about possible government intervention to stem the yen's decline, providing additional support for the JPY.
However, the bigger picture remains mixed. The collapse of the LDP-Komeito coalition ahead of the October 20 deadline to approve Sanae Takaichi as the new PM adds to political uncertainty. At the same time, increasingly dovish expectations from the Fed are pressuring the US dollar, keeping USD/JPY gains contained. In essence, the yen is benefiting from short-term gains, but bullish confidence remains limited until clear signals from the BoJ and developments in Japanese politics. (az)]
Source: Newsmaker.id