Yen Drops to Fresh Low vs USD Amid Fiscal Concerns and Rate Gap

The Japanese Yen continues to drop against the US Dollar, reaching a fresh low since July 31. This downturn is largely attributed to Japan's fiscal woes and the significant rate gap between the two countries.

The widening interest-rate differential has further undermined the JPY, with borrowing costs in Japan remaining lower than those in other major economies, including the US.

US Treasury Secretary Scott Bessent's comments have also added pressure on the Bank of Japan (BoJ) to raise rates, with investors awaiting the release of the US Nonfarm Payrolls (NFP) report on Friday before making fresh bets.