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Japanese yen recovers amid policy signals and election focus
03-Feb-26   11:39 Hrs IST

The Japanese yen moved back above 155 per dollar on Tuesday after two days of losses, even as the US dollar remained underpinned by strong economic data and a more hawkish Federal Reserve outlook. The dollar index hovered near 97.3 following a sharp rebound earlier in the week. Pressure on the yen has persisted amid domestic political developments, after Prime Minister Sanae Takaichi signaled that a weaker currency could benefit exporters. With a snap lower house election set for February 8 and expectations of expansionary fiscal policies, investors remain cautious. Attention now shifts to Friday's US jobs report, though its release could be delayed by a partial government shutdown.

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