The Japanese yen fell in Asian trading on Monday at the start of the week, extending losses for the seventh consecutive session against the US dollar and hitting a three-week low, weighed down by expectations surrounding the new Prime Minister Sanai Takaichis expansionary economic policies.

A summit between Takaichi and US President Donald Trump is scheduled for Tuesday in Tokyo as part of Trumps official visit to Japan, which begins today. The talks are expected to focus on strengthening economic cooperation between the two nations, following the recent trade agreement that laid the groundwork for a new phase of strategic partnership.

The Bank of Japan is also expected to discuss this week whether conditions are suitable to resume rate hikes as fears of tariff-induced recession ease.

Price Overview

USD/JPY rose by about 0.3% to 153.18 yen the highest since October 10 from an opening level of 152.76 yen, with an intraday low of 152.65 yen.

The yen ended Fridays session down 0.2% against the dollar, marking its sixth consecutive daily loss the longest losing streak since early October.

For the week, the yen lost about 1.5% versus the dollar, its second weekly decline in three weeks, pressured by expectations of new stimulus measures under Takaichis government.

New Stimulus Package

Government sources told Reuters that Prime Minister Sanai Takaichi is preparing an economic stimulus package likely to exceed 13.9 trillion yen ($92 billion) to help households cope with rising prices and inflation. The final size of the package is still being finalized and is expected to be announced early next month.

TakaichiTrump Summit

President Donald Trump arrived in Japan on Monday and will hold a summit with Prime Minister Takaichi the following day to discuss ways to enhance economic and trade cooperation between the two countries. The meeting is expected to address regional and global issues of mutual concern, including relations with China, Indo-Pacific security, and the future of global supply chains.

The visit underscores both nations efforts to strengthen their strategic partnership and promote stability and growth across the Asia-Pacific region.

Bank of Japan

The Bank of Japan meets Wednesday and Thursday this week to assess monetary policy for the worlds fourth-largest economy, with expectations it will leave interest rates unchanged for the sixth consecutive meeting.

Policymakers are likely to discuss whether conditions are now suitable to resume gradual rate hikes amid easing recession fears linked to global tariffs.

Prime Minister Takaichi has urged the central bank to coordinate efforts toward achieving inflation driven more by wage growth rather than cost pressures.