Yen Hits Historic Lows Amid Japan's Political Shifts

The Japanese yen has plummeted to its weakest standing since February, influenced by concerns over increased fiscal spending under Japan's new ruling party. The market anticipates more expansive policies akin to 'Abenomics' following the election of Sanae Takaichi. This political shift has investors uncertain about the Takaichi administration's fiscal policies.

Simultaneously, the euro experienced a downturn due to political instability in France. The caretaker Prime Minister Sebastien Lecornu hinted at a potential budget deal, despite his government's sudden resignation. Analysts warn that the euro's stability hinges on resolving France's political dilemma.

On another note, the U.S. dollar has gained strength owing, in part, to the absence of economic data from the U.S. federal government shutdown that might suggest a slowing economy. As central banks maneuver interest rates, global currencies react, with the New Zealand dollar also losing ground amid unexpected rate cuts.

(With inputs from agencies.)