Kyunghyang Shinmun file photo

The value of the Japanese yen fell to a one-year low, its weakest since mid-January last year.

According to Kyodo News and NHK on the 10th, the yen-dollar exchange rate at one point during trading on the 9th (local time) in the New York foreign exchange market exceeded 158 yen to the dollar.

Kyodo News reported that “the depreciation of the yen accelerated due to the impact of some reports that Prime Minister Sanae Takaichi is considering an early general election.” On the same day, the Yomiuri Shimbun reported that, backed by high approval ratings, Prime Minister Sanae Takaichi is considering dissolving the House of Representatives early in the ordinary Diet session scheduled to convene on January 23 and holding a snap general election in February.

Kyodo News analyzed that speculation that, if the Liberal Democratic Party wins the election, the expansionary fiscal policy advocated by Prime Minister Takaichi would be strengthened prompted selling of yen and buying of dollars.