The yen is expected to have its best weekly performance since 2024.

The yen is expected to achieve its biggest weekly gain since November 2024, as the market believes that with the victory of Japanese Prime Minister Kishida Fumio, he will be able to expand fiscal stimulus while maintaining market confidence. The yen has risen against the US dollar for four consecutive days, with an appreciation of about 2.8% so far this week. Risk assets are experiencing deep sell-offs, and safe-haven demand is also supporting the yen. Investors interpret Kishida Fumio's victory as a reduction in political uncertainty and a decrease in the worst-case scenario risk for fiscal measures, which has led to a stronger yen and a decline in Japan's government bond yields from multi-year highs set last month. In a press conference on Monday, Kishida Fumio acknowledged concerns in the market about the two-year exemption policy for the food consumption tax and reiterated that he will not issue government bonds for this measure.