With expectations of aggressive fiscal stimulus and monetary easing by the Liberal Democratic Party's new president, Mr. Takashi, the USD/JPY rose sharply for the third consecutive day.

【10/6Market Overview

In Tokyo time, the dollar/yen pair began the week with a gap up at the early hours of the week when Prime Minister candidate Takai (taken as Kaori Takashi? Note: 高市氏 refers to Sanae Takai? Actually 高市早苗 Saegane? In this context, 高市氏 likely refers to Takai, but the candidate 高市早苗 is Sanae Takai? Clarify: 高市早苗 is Sanae Takai, the LDP candidate. So translate as Takai) was elected, with expectations of fiscal stimulus and monetary easing. The Nikkei Stock Average surged, and due to domestic demand buying in dollars, the USD/JPY briefly reached 150.47 yen, the highest since 8/1. In European time, the trend of yen weakness and dollar strength continued.150.47yen and8/1the high since.NYtime, one of Takai’s economic brains, former Deputy Chief Cabinet Secretary Etsurou Honda, said that “1dollar =150150yen would be too far,”yen, and the USD/JPY fell to as low as149.75yen. After selling pressure eased, the pair gradually inched higher.

【10/7Market View