Yen Tumbles Amid Japan's Political Uncertainty

The yen fell to a three-month low due to Japan's ruling coalition losing a parliamentary majority. This development is expected to delay interest rate hikes. Meanwhile, the U.S. dollar gains strength on signs of U.S. economic resilience and predictions of Trump's electoral success.

The yen experienced a significant drop on Monday, hitting a three-month low as Japan's ruling coalition lost its parliamentary majority in recent elections, potentially stalling future interest rate increases.

This political shift saw the yen decline by 1%, both against the dollar and the euro, reaching its weakest level since late July. The coalition's shortfall has sparked concerns about Japan entering another phase of political instability.

Meanwhile, the U.S. dollar is on track for its largest monthly gain in over two years, supported by strong economic indicators and expectations of Donald Trump's potential presidency.

(With inputs from agencies.)