Bloomberg reported a record drop in the yen against the dollar since 2024.

The yen fell to its lowest value against the dollar since July 2024 amid rumors of early parliamentary elections in Japan. This was reported by Bloomberg on January 13.

"On Tuesday, the Japanese currency fell 0.5% to 158.91 per dollar, exceeding the previous low of 158.87 recorded in January 2025. Government bonds have also fallen sharply across the yield curve," the publisher writes.

It is noted that the holding of parliamentary elections in Japan may further strengthen the position of Prime Minister Sanae Takaichi. According to analysts, this may lead to a strengthening of its authority and a repeated fall in the value of the currency.

Analysts believe that the yen may continue to fall in price and reach more than 160 yen per dollar by the end of 2026. It is noted that this trend is due to the yield gap between the United States and Japan, negative real interest rates and continued capital outflows.

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The Financial Times newspaper reported on January 12 that Japanese Prime Minister Sanae Takaichi is considering holding general parliamentary elections as early as February in order to take advantage of his high rating and return his Liberal Democratic Party (LDP) to the parliamentary majority. According to recent polls, her cabinet's approval rating is around 70% or higher among Japanese people aged 30 to 40.

Meanwhile, on December 19, 2025, the Bank of Japan decided to raise the rate to the highest in the last 30 years. Short-term interest rates were raised from 0.5% to 0.75%.

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