Japanese Yen Sinks Amid Fiscal Spending Concerns; Euro Stumbles with French Political Uncertainty
The Japanese yen and euro weakened against the U.S. dollar due to fiscal spending concerns in Japan and political uncertainty in France. Traders are adjusting their expectations for the Bank of Japan's policies after Sanae Takaichi's leadership victory. The euro's struggle follows the resignation of France's prime minister.
In a tumultuous turn of events, the Japanese yen and euro both fell against the U.S. dollar on Tuesday, driven by concerns over Japan's fiscal spending and political uncertainty in France.
The yen touched a six-month low following Sanae Takaichi's leadership victory, which paves the way for her to become Japan's next prime minister. Traders are recalibrating their expectations for the Bank of Japan's policy trajectory, with a notable shift occurring after Takaichi's win.
Meanwhile, the euro remains under pressure after France's prime minister resigned, complicating President Emmanuel Macron's fiscal agenda and risking a delay in the 2026 budget bill. Both currencies face significant challenges as traders navigate these unfolding scenarios.
(With inputs from agencies.)
Google News