Japan's First Female PM Shakes Up Yen and Markets

Sanae Takaichi becomes Japan's first female prime minister, leading to fluctuations in the yen as investors anticipate her fiscal policies. Her election is expected to bring fiscal stimulus, but may complicate monetary policy decisions by the Bank of Japan. Takaichi's stance impacts market confidence.

Sanae Takaichi has made history as Japan's first female prime minister, stirring market reactions as investors contemplate her potential impact on fiscal and monetary policy. Her appointment has led to a downward push on the yen, with the currency falling 0.4% to 151.38 per dollar.

Takaichi, leader of Japan's ruling Liberal Democratic Party, secured the position with backing from the right-wing opposition party Ishin. Her support for fiscal stimulus and looser monetary policy is seen as a challenge for the Bank of Japan, which must navigate fiscal easing and potential rate increases.

Investors remain cautious as they assess Takaichi's policies, particularly her appointment of Satsuki Katayama as finance minister. The market is on edge, awaiting further developments, including the Federal Reserve's policy meeting expected to influence international currency trends.

(With inputs from agencies.)