Story perspectives

JPY Gains Amid Japan's Political Instability; Dollar Strengthens

10/12/2025

Summary

Story summary

The Japanese Yen (JPY) rose 0.2% against the US Dollar amid political instability in Japan's ruling coalition.
Analysts say the instability could affect the Bank of Japan's (BoJ) tightening plans.
The US dollar rose about 1.5% this week as uncertainties in France and Japan supported the S&P 500 and Nasdaq 100.
Gold prices stayed around $4,000, while oil and natural gas fell on Gaza ceasefire and higher supply.

History

Historical Context

In December 2012, Japan's Liberal Democratic Party (LDP) regained power after a significant defeat of the Democratic Party, leading to Shinzo Abe's election as Prime Minister. His administration initiated aggressive monetary policies, including quantitative easing, to combat deflation. By early 2013, these measures raised concerns of a potential currency war, impacting global markets and Japan's economic recovery amid ongoing political instability.

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Story summary

The Japanese Yen (JPY) rose 0.2% against the US Dollar amid political instability in Japan's ruling coalition.
Analysts say the instability could affect the Bank of Japan's (BoJ) tightening plans.
The US dollar rose about 1.5% this week as uncertainties in France and Japan supported the S&P 500 and Nasdaq 100.
Gold prices stayed around $4,000, while oil and natural gas fell on Gaza ceasefire and higher supply.

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