Takaichi's Approval Ratings Sink: What It Means for Yen and Crypto Markets

Japan's Prime Minister Sanae Takaichi is facing a decline in approval ratings, dropping below 50% for the first time since her inauguration. The drop was particularly notable among older voters, who were concerned about persistent inflation pressures and divisive legislative proposals.

Takaichi's cabinet won a historic supermajority in the February 2026 election, which led to a surge in the Nikkei to over 56,000. However, this approval rating decline may signal a shift towards looser spending policies, potentially sending shockwaves through currency markets and risk assets.

A weaker yen would likely have negative effects on global markets, but could also benefit Japanese equities in the short term due to the boost it gives export-heavy companies. Meanwhile, crypto investors should pay attention to yen dynamics, as a disorderly decline could lead to increased intervention or tighter monetary policy from the Bank of Japan.