Political Shifts Shake Currency Markets Amid Economic Uncertainty

The Japanese yen took a hit on Monday as Prime Minister Shigeru Ishiba announced his resignation, paving the way for a period of political uncertainty in Japan's already fragile economy. Market watchers are now eyeing the chance of a new leader implementing looser fiscal and monetary policies.

Concurrently, the U.S. dollar struggled after a weak jobs report last Friday, which bolstered expectations for a Federal Reserve rate cut this month. Investors have taken a bearish view, foreseeing potential economic shifts in the coming weeks that could influence currency stability worldwide.

In Europe, French Prime Minister Francois Bayrou's looming confidence vote loss threatens to plunge the euro zone deeper into a political crisis, adding another layer of instability for global markets to navigate.

(With inputs from agencies.)