Yen Slumps to 1-Year Low Near 158 as Takaichi Election Rumors Intensify

The Japanese yen is facing a steep decline. On Friday, January 9, 2026, the currency touched the 158 level against the dollar for the first time in a year. The sudden drop follows reports that Japanese Prime Minister Sanae Takaichi is considering calling a snap election, rattling investor confidence.

Behind the Yen 1-Year Low: The Takaichi Snap Election Factor

According to Nikkei, speculation about an early election has put immense pressure on the Japanese currency. Markets often view such political maneuvers as precursors to increased fiscal spending or shifts in monetary policy. The yen's descent to the 158 mark represents its weakest point since January 2025, erasing recent gains driven by the Finance Minister's verbal interventions just days ago.

Rising Import Costs and Business Anxiety

The yen's weakness is a double-edged sword. While it may help large exporters, it's causing significant distress for business chiefs who rely on imported raw materials and energy. The rising costs are thinning profit margins, leading to calls for a stronger, more stable currency to protect domestic economic interests.