Yen slides as Takaichi election victory paves way for more stimulus

The yen fell to a two-week low on Monday after Sanae Takaichi's election win. Her new supermajority is expected to pave the way for more fiscal stimulus.

Insights:
Sanae Takaichi sanae takaichi has won a sweeping victory in the lower house election in Japan JPJP, giving her coalition a two-thirds supermajority in Japan's lower house of parliament. The landslide result, confirmed today, February 9, 2026, has immediately impacted the foreign exchange market, where the yen extended its losses to reach its weakest level in two weeks. This outcome is expected to ease the path for the government to pursue further fiscal stimulus while significantly reducing political uncertainty across the nation.
Banknotes of Japanese yen are seen in an illustration picture taken on September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo/File Photo
Banknotes of Japanese yen are seen in an illustration picture taken on September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo/File Photo
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