12.02.202606:38:34UTC+00Yen Pulls Back After Three-Day Rally

The Japanese yen eased to around 153.5 per dollar on Thursday, pausing after a three-session rally as investors weighed continued verbal intervention from Tokyo and the implications of Prime Minister Takaichi’s expansionary fiscal agenda for domestic growth. Top currency diplomat Atsushi Mimura stated that authorities remain on high alert over foreign exchange movements, even after the yen’s recent gains, particularly in the wake of stronger-than-expected US employment data. Finance Minister Satsuki Katayama likewise emphasized that the government would address FX developments in line with the US–Japan joint statement. The yen had climbed about 2.5% over the previous three sessions following Takaichi’s decisive general election victory, which handed her a strong mandate to pursue higher fiscal spending and tax cuts. Markets are now betting that her policy program could bolster economic growth and give the Bank of Japan more room to normalize monetary policy via higher interest rates.