Yen traders are on edge for the risk of renewed volatility in the currency as uncertainty over the nation’s snap election grows with a Bank of Japan meeting approaching next week.

Japan’s currency hit its weakest level in 18 months earlier this week on expectations Prime Minister Sanae Takaichi will call a vote that may strengthen her position and allow for increased government spending.

"Dollar-yen wasn’t moving for the last weeks, if not months, and it took off with this election headline,” said Bart Wakabayashi, Tokyo branch manager at State Street Bank & Trust. "The volatility will continue.”

Adblock test (Why?)