The Japanese Yen (JPY) weakened 0.5% against the US Dollar (USD), hitting fresh local lows last seen in February, as traders reacted to Prime Minister Takaichi’s call for closer coordination between the government and the Bank of Japan, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JPY underperforms G10 as markets react to Takaichi’s BoJ push

"The JPY is weak, down 0.5% against the US Dollar (USD) and once again underperforming all of the G10 currencies with a break to fresh local lows reaching levels last seen in February. Fundamental releases have been limited, and market participants are reacting to newly arrived PM Takaichi’s efforts to boost govt/BoJ collaboration."

"Takaichi has asked BoJ Gov. Ueda to report regularly to the government’s economic and fiscal council meeting, and markets appear to be interpreting this as a form of imposed cooperation."