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Singapore dollar surges against the Japanese yen to its strongest level in more than a year

Singapore dollar surges against the Japanese yen to its strongest level in more than a year

By Kim Browne

Culture

The Singapore dollar strengthened to its strongest level against the Japanese yen in more than a year on Wednesday (Oct 8) morning.

The latest move marks the rapid weakening of the yen since the beginning of the month.

The yen was 117.78 against the Singapore dollar in the morning, dramatically slumping from around the 114 level in the start of Oct.

It compares to a level of around 115 at the end of last year. The previous height was in July 2024, when it was at a level of around 119 against the Singdollar.

The yen’s depreciation comes amid a significant political transition in Japan, with the ruling Liberal Democratic Party (LDP) electing a new leader last Saturday.

Incoming prime minister Sanae Takaichi, a conservative protege of former leader Shinzo Abe, is set to become the country’s first female premier.

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Sanae Takaichi was considered to have the most expansionist fiscal and monetary agenda among five candidates in the Liberal Democratic Party (LDP) race to replace hawkish Prime Minister Shigeru Ishiba.
Takaichi in the past has certainly been an advocate for free-spending policies. But the LDP is not in a position to force through such radical plans these days.

Takaichi has in the past backed aggressive monetary easing and big fiscal spending, echoing Abe, though she seems to have tempered her stance on the campaign trail.

Her election has thus put markets on alert for both continuation of aggressive fiscal spending and loose monetary policies, which have historically contributed to a weaker yen.

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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