Yen Heads for Biggest Weekly Drop Since October Before Election

The yen is on track for its biggest weekly drop since October, as traders brace for a decisive victory by Japanese Prime Minister Sanae Takaichi’s Liberal Democratic Party in this weekend’s election.

Japan’s currency has weakened for the past four trading days, and is approaching 157 against the dollar on Thursday morning. Investors are betting that a strong mandate will allow Takaichi to consolidate power and push expansive fiscal policies.