Currency Markets in Flux Amid Interest Rate Debates

The yen fell to record lows against the euro and neared a nine-month trough against the dollar as Japan's new Prime Minister pushed for slow interest rate hikes. The Australian dollar rose due to a drop in unemployment. Currency markets may experience volatility as the U.S. government shutdown ends.

The yen hit record lows against the euro and lingered near a nine-month low against the dollar after Japan's recently appointed Prime Minister urged the central bank to ease up on interest rate hikes. Meanwhile, in Australia, the dollar surged following unexpectedly positive unemployment data, countering predictions of further rate cuts.

Market volatility is expected as the U.S. government shutdown concluded, allowing the release of delayed economic data. However, key U.S. figures like jobs and consumer prices for October might remain unpublished according to the White House.

Japan's Prime Minister expressed her preference for low-interest rates and requested regular reports from the Bank of Japan. Speculation about the yen's weakening influencing a potential rate hike is rising, with chances of an increase currently standing at 24% for December, escalating to 46% by January.

(With inputs from agencies.)