The Japanese Yen has come under renewed pressure, with USD/JPY trading at 155.50. The lack of concrete follow-up to verbal interventions and political statements regarding a weak currency have contributed to this weakness. A potential LDP win in upcoming elections may further impact the JPY negatively, notes Volkmar Baur from Commerzbank.

Political factors affecting the Yen

"On the one hand, this is likely due to the fact that the verbal intervention has not been followed up by any concrete steps so far and that at least the US side has recently asserted that it would not intervene in the market."

"A big win for the LDP this coming weekend is therefore likely to weigh on the JPY again, especially in light of the Prime Minister's recent statements."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)