Stocks drop as yen in focus

The yen has declined this week on concerns that Takaichi will introduce more fiscally expansive policies

Major stock indexes eased on Thursday as the newly elected leader of Japan’s ruling party failed to boost market confidence about the currency’s direction.

Sanae Takaichi, the newly elected leader of the country’s ruling party, said she did not want to trigger excessive declines in the Japanese currency, which led to a brief decline in the dollar versus the yen before the move reversed.

The yen has declined this week on concerns that Takaichi will introduce more fiscally expansive policies. The dollar was last up 0.27% at 153.09 yen after earlier reaching 153.23, the highest since February 13.

Oil prices dropped as investors weighed a ceasefire deal could ease Middle East tensions against stalled peace talks in Ukraine, while spot gold dropped after safe-haven demand drove the metal above $4,000 an ounce for the first time this week.

Argentina’s international dollar bonds rallied and the Argentine peso firmed late on Thursday after direct participation from the U.S. Treasury in the foreign exchange market.

U.S. Treasury Secretary Scott Bessent made the announcement after the market closed, as part of previously pledged support for Argentine President Javier Milei’s reform programs.

Argentina’s 2035 bond rose 4.6 cents to trade at 60.58 cents on the dollar, while the peso closed at 1,425 per dollar, up 0.8% on the day, following sessions of managed weakness with intervention from the Treasury.

It makes sense for the Argentinian peso to jump as it has after a currency swap of $20 billion to alleviate the financial crisis Argentina is going through. And this goes along with the U.S. administration’s policy of aiding those who are aligning with its agenda on trade, diplomacy, and other American interests, said Juan Perez, director of trading at USA in Washington.