Select Language

Japan's PM Ishiba may seek snap election if no-confidence motion submitted

Breaking news

Japan's PM Ishiba may seek snap election if no-confidence motion submitted

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.03 08:45
Japan's PM Ishiba may seek snap election if no-confidence motion submitted

update 2025.06.03 08:45

Japanese Prime Minister Shigeru Ishiba said late Monday that he may dissolve the House of Representatives for a snap general election if the main opposition party submits a no-confidence motion, per Japan Today. 

The source noted that Ishiba could take the move before any no-confidence motion is put to a vote in the chamber. If such a motion is submitted and approved, the Prime Minister must dissolve the lower house or the cabinet must resign en masse within 10 days.

Market reaction

At the time of writing, the USD/JPY pair is trading 0.19% lower on the day to trade at 142.45. 

Japanese Yen FAQs

The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

One of the Bank of Japan's mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

Over the last decade, the BoJ's stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.


Date

Created

 : 2025.06.03

Update

Last updated

 : 2025.06.03

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

USD/CAD weakens as BoC holds rates, US data disappoints

The Canadian Dollar (CAD) extends its advance against the US Dollar (USD) on Wednesday after the Bank of Canada (BoC) held interest rates steady, aligning with market expectations.
New
update2025.06.05 01:53

Gold price surges on weak US ISM report; trade tensions boost safe haven demand

Gold price rallied over 0.80% on Wednesday during the North American session. The release of weaker-than-expected economic data from the United States (US) pushed XAU/USD higher as business activity softened and the jobs market added fewer people to the workforce.
New
update2025.06.05 00:59

AUD/USD rebounds as US Dollar slips on soft jobs, ISM data

The Australian Dollar (AUD) appreciates against the US Dollar (USD) on Wednesday, shrugging off softer-than-expected domestic GDP data as the Greenback retreats following disappointing US employment and ISM Services PMI figures.
New
update2025.06.05 00:23

EUR/CAD steadies as Bank of Canada holds rate steady at 2.75%

EUR/CAD is trading flat in the early hours of the American session on Wednesday after the Bank of Canada (BoC) announced its decision to leave interest rates unchanged at 2.75%.
New
update2025.06.04 23:56

US ISM Services PMI drops to 49.9 in May vs. 52 expected

The business activity in the US service sector contracted slightly in May, with the Institute for Supply Management's (ISM) Services Purchasing Managers Index (PMI) dropping to 49.9 from 51.6 in April. This reading came in below the market expectation of 52.
New
update2025.06.04 23:06

Global PMIs: Front-loaded factory output unwinds - Standard Chartered

Manufacturing PMIs deteriorated at a faster rate in May versus April amid fading boost from front-loading. Coincident indicators were downbeat, but the US-China tariff truce helped to improve outlook.
New
update2025.06.04 22:45

Indian Rupee weakens for the second day as PMI disappoints, focus shifts to US data

The Indian Rupee (INR) weakens against the US Dollar (USD) for the second straight day on Wednesday, as a firmer Greenback and disappointing Indian PMI figures weigh on sentiment.
New
update2025.06.04 22:24

US Pres. Trump: Powell must now lower the rate

In a post published on Truth Social on Wednesday, United States President Donald Trump called upon Federal Reserve (Fed) Chairman Jerome Powell to lower the policy rate.
New
update2025.06.04 21:32

Breaking: Private sector employment in US rises 37,000 in May vs. 115,000 expected

Private sector employment in the US rose by 37,000 in May, the Automatic Data Processing (ADP) reported on Wednesday. This reading followed the 60,000 increase recorded in April and missed the market expectation of 115,000 by a wide margin.
New
update2025.06.04 21:18

US Dollar Index (DXY) stalls above 99.00 as JOLTS jobs optimism fades

The US Dollar Index (DXY) nudges lower on Wednesday, following a sharp rebound on Tuesday.
New
update2025.06.04 20:51

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel