In early Asian deals on Wednesday, the yen declined against other major currencies as traders reduced holdings of Japanese currency on hopes that the new government under the leadership of Shinzo Abe will pursue aggressive stimulus measures to combat deflation.
Japan's incoming Prime Minister Shinzo Abe and his Liberal Democratic Party have reached an agreement with coalition partner New Komeito Party on an economic policy package that includes setting an inflation target of 2 percent.
The package reportedly calls for more stimulus to help the economy recover from its current slump. Abe and ally Natsuo Yamaguchi of New Komeito announced the accord in Tokyo yesterday.
Abe will appoint a cabinet today after being named as Prime Minister in a special session of the lower house of parliament.
The minutes of the Bank of Japan's November monetary policy meeting showed that some members of the bank's policy board wanted the central bank to take appropriate and decisive actions, if risks regarding the outlook increased substantially.
A number of policymakers also raised the point that it might be necessary for BoJ to improve its policy measures further to enhance the influence of monetary policy on foreign exchange rates.
The yen slipped to 85.38 against the U.S. dollar, its lowest level since April 2011. The yen thus lost 0.74 percent from Tuesday's close of 84.75. The next downside target level for the yen is seen at 86.00.
Against the euro, the yen declined to a 1-week low of 112.505, down 0.7 percent from yesterday's closing value of 111.725. The next support level for the yen is seen at 115.00.
The yen dipped to near a 16-month low of 93.1805 against the Swiss franc with 94.00 seen as the next downside target level. The pair ended yesterday's deals at 92.585.
Against the pound, the yen touched 137.69, its lowest level in a week. If the yen extends fall, it may break 140.00 level. At Tuesday's close, the pair was quoted at 136.66.
The yen slipped to a 5-day low of 88.435 against the Australian counterpart, compared to Tuesday's close of 87.85. On the downside, 90.00 is seen as the next target level for the yen.
The yen hit a 5-day low of 70.2305 against the NZ dollar and the yen is likely to find next downside target level at 71.00. The kiwi-yen pair finished yesterday's deals at 69.705.
Against the Canadian currency, the yen fell to a fresh 1-1/2-year low of 86.095 with 88.00 likely to find as next downside target level. At yesterday's close, the pair traded at 85.493.
There are no economic reports due in the European session.
From the U.S., S&P/Case-Shiller home price index for October is due in the New York session.
For comments and feedback contact: editorial@rttnews.com
Forex News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.