The yen extended gains as the dollar weakened following Prime Minister Sanae Takaichi’s election victory, while markets awaited key U.S. economic data due Wednesday.
Japan’s currency snapped a six-day slide after nearing 160 per dollar, easing fears of official intervention to support the yen.
Analysts said Takaichi’s plans for tax cuts and fiscal spending could lift growth and stocks, potentially encouraging a more hawkish Bank of Japan.
The yen rose 0.23% to 155.52 per dollar and gained against the euro, extending Monday’s sharp rebound.
Investors are also focused on delayed U.S. employment and inflation reports, which may shape expectations for the Federal Reserve.
White House adviser Kevin Hassett said job gains may slow, adding uncertainty over whether labor-market weakness has stabilized.
The euro held near $1.19 after a jump, as European Central Bank President Christine Lagarde downplayed currency influence on policy.
Elsewhere, the yuan strengthened to its highest since May 2023, while the Australian and New Zealand dollars edged lower after recent rallies.
