Currency Waves: Yen Resilience and Euro Pressure Amid Political Unrest

The dollar saw varied movement on Thursday as Japan's yen halted its decline, and the euro faced downward pressure amid France's political uncertainty. In Japan, concerns over newly appointed Sanae Takaichi's potential fiscal policies initially weakened the yen, reaching its lowest mid-February level against the dollar.

Traders observed that skepticism was growing over Takaichi's ability to implement substantial fiscal stimulus and counter the Bank of Japan's tightening measures. This sentiment reflects inflationary pressures, prompting calls for change from Japanese households. Takaichi announced plans to mitigate rising living costs once she assumes the prime ministerial role.

Meanwhile, France's governmental shake-up has dented the euro. With Prime Minister Sebastien Lecornu's resignation, investors grow anxious over France's expanding deficit and the delay in budget approvals. Across the Atlantic, U.S. Federal Reserve's hawkish signals, as reflected in the latest meeting minutes, influences market projections regarding future interest rate cuts.

(With inputs from agencies.)