Ammon News - The yen fell sharply on Monday following the resignation of Japanese Prime Minister Shigeru Ishiba, while the dollar remained on shaky footing after Friday's weak U.S. jobs report cemented expectations of a Federal Reserve rate cut this month.

The focus for markets will also be on French Prime Minister Francois Bayrou's confidence vote, which he is expected to lose, plunging the euro zone's second-largest economy deeper into political crisis.

Japan's Ishiba on Sunday announced his resignation, ushering in a potentially lengthy period of policy uncertainty at a shaky moment for the world's fourth-largest economy.

The yen slumped in response in Asia trade, and was last down 0.5% against the dollar at 148.16, having pared some losses over the course of the session.

The Japanese currency similarly slid to its lowest in more than a year against the euro and sterling at 173.91 and 200.33, respectively.
Investors are focusing on the chance of Ishiba being replaced by an advocate of looser fiscal and monetary policy, such as Liberal Democratic Party (LDP) veteran Sanae Takaichi, who has criticised the Bank of Japan's interest rate hikes.

Reuters