The Japanese yen fell in Asian trading on Friday against a basket of major and minor currencies, extending losses for the sixth consecutive session against the US dollar and touching a two-week low, as markets continued to price in Sanae Takaichis stimulus pressure.

Japans first-ever female prime minister is preparing to unveil a massive stimulus package aimed at supporting the worlds fourth-largest economy a move that could further pressure Bank of Japan policymakers and likely delay any near-term steps toward monetary normalization or rate hikes.

Price overview

Todays yen exchange rate: The dollar rose 0.25% against the yen to 152.91, its highest since October 10, up from an opening of 152.55, after hitting a session low of 152.47.

The yen closed Thursday down roughly 0.4% versus the dollar, marking its fifth straight daily decline amid expectations of expansionary policies from Sanae Takaichis new administration.

Weekly performance

Over the course of the week, which officially ends with Fridays close, the yen is down about 1.5% against the US dollar, on track for its second weekly loss in the past three weeks.

Sanae Takaichi

In a historic milestone, Japan turned a new page in its political history on Tuesday as Sanae Takaichi won the premiership, becoming the first woman ever to hold the countrys top office.

According to NHK, Takaichi secured 237 votes in the first round of parliamentary voting, eliminating the need for a runoff in the 465-seat lower house.

Her victory followed an agreement between the ruling Liberal Democratic Party and the Japan Innovation Party to form a coalition government. According to Reuters, Takaichi accepted several Innovation Party policy proposals, including reducing parliamentary seats, offering free secondary education, and freezing the food consumption tax for two years.

Takaichi had faced major political risk after her abrupt split from Komeito the LDPs coalition partner for more than 26 years earlier this month.

A close ally of the late Shinzo Abe, Takaichi is known for her support of the stimulus policies that defined Abenomics. Analysts believe her leadership could boost Japanese equities but keep the yen under sustained pressure due to continued loose monetary policy.

After winning the LDP leadership, Takaichi pledged to strengthen Japans economy through aggressive spending and criticized the Bank of Japans interest-rate hikes.

New stimulus package

Government sources told Reuters that Prime Minister Takaichi is preparing an economic stimulus package likely to exceed 13.9 trillion ($92 billion) to help households cope with rising prices and inflation.

The final size of the package is still being finalized, with an announcement expected early next month.

Japanese interest rates

Takaichi, a proponent of flexible fiscal and monetary policies, said Tuesday that monetary decisions should be left to the Bank of Japan.

Economists generally believe the new prime minister will not obstruct the BOJ from raising rates, though most expect the next hike to come no earlier than December.

Finance Minister Satsuki Katayama said Wednesday that close coordination between the government and the BOJ is essential to ensure policy effectiveness.

The Bank of Japan is scheduled to announce its next monetary policy decision on October 30. Futures markets currently price about a 20% chance of a quarter-point rate hike to 0.75%.

Analyst views

Kaburuso of the Commonwealth Bank of Japan said: Given Takaichis desire for close coordination between the government and the Bank of Japan, the BOJ is likely to refrain from raising rates until the Diet approves her proposed economic package.