The surprise resignation by Prime Minister Abe has mattered little to Japanese Yen traders today since the Yen is weaker against some currencies and stronger against others.
Typically political uncertainty is never good for a country?s currency but Abe?s weak approval ratings indicate that Japanese citizens want to see change. Whoever takes Abe?s place will most likely favor of low interest rates. Economic growth has been tepid, which is part of the reason why consumers are so unhappy and unless the new Prime Minister wants to have low approval ratings like Abe, generating faster growth will be one of his top priorities.
Written by Kathy Lien, Chief Currency Strategist of DailyFX.com