The Japanese yen weakened to around 150.5 per dollar on Tuesday, sliding to its lowest level in over two months after fiscal dove and pro-stimulus lawmaker Sanae Takaichi won the ruling Liberal Democratic Party leadership race over the weekend, paving the way for her to become the next prime minister. Her victory fueled expectations of large-scale fiscal spending and continued monetary accommodation. Meanwhile, Bank of Japan Governor Kazuo Ueda reiterated Friday that the central bank would resume rate hikes if growth and inflation progress as projected. Ueda also warned that US tariffs are squeezing exporters’ profits, especially in the auto sector, though broader effects on investment, employment, and wages remain contained. On the data front, Japan’s household spending rose 2.3% in August, beating forecasts and marking the fastest growth in three months, supported by government measures to ease cost pressures and offset the impact of US tariffs.