Japan's currency has weakened amid pre-election uncertainty, while the dollar index is strengthening its position.

Amid Japan’s preparations for upcoming elections, the Japanese currency is actively losing value. According to RTHK, the yen has experienced a four-day decline, reflecting political uncertainty in the domestic market. Meanwhile, the dollar index remains stable, fluctuating around 97.65 with an increase of over 0.2%, indicating growing demand for the US dollar amid global instability.

Yen Under Pressure from Elections: Japanese Currency Loses Ground

The Japanese currency continues to weaken as the electoral process approaches. The Japanese yen reached a two-week low, rising to 156.94 yen per dollar. Later in the New York trading session, the US dollar approached the critical level of 157 yen, signaling an acceleration of pressure on the Japanese currency. This dynamic reflects a historical pattern: political uncertainty in the country typically weakens its national currency on the global market.

US Dollar Strengthens Overall

The dollar index shows steady strengthening amid volatility in global currency markets. The US dollar has increased approximately 0.2% against the Canadian dollar, remaining above 1.366. Against the British pound, the dollar rose by 0.3%, fluctuating around 1.365. Meanwhile, the euro demonstrates more stability, holding near 1.18 against the US dollar.

Commodity Currencies Retreat: Global Reaction to Demand

Commodity currencies are experiencing significant pressure amid the dollar’s strengthening. The Australian dollar fell about 0.4% in late New York trading, dropping slightly below 0.7 against the US dollar. The New Zealand dollar showed an even more pronounced decline, losing over 0.7% and falling to around 0.6. This dynamic reflects a global reassessment of risks by investors and the resulting reallocation of capital into safer assets represented by the US dollar.