Market Turmoil: Yen Weakens Amid Japanese Political Shakeup

The yen slipped on Monday in the wake of Japanese Prime Minister Shigeru Ishiba's weekend resignation, which has thrown the nation's policy future into uncertainty. The dollar also experienced instability due to expectations of a Federal Reserve rate cut following disappointing U.S. jobs data.

The uncertainty in Japan and potential changes in fiscal and monetary policy have kept markets on edge. Investors are speculating on a more lenient successor to Ishiba, who might advocate for looser monetary policies to support the economy.

Global market dynamics are influenced by these developments, with French Prime Minister Francois Bayrou's confidence vote adding to the political tensions. The struggling U.S. labor market has added to the volatility, as analysts anticipate a possible rate change by the Fed.

(With inputs from agencies.)