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