The Japanese yen weakened toward 157.5 per dollar on Thursday, languishing at ten month lows as investors braced for the announcement of Prime Minister Sanae Takaichi’s stimulus package, which is expected to exceed 20 trillion yen. The massive spending plan has raised concerns about Japan’s fiscal health, fueling a 'Sell Japan' trade that pushed the yen and bond prices lower, though equities held firm as Nvidia’s strong earnings eased worries about an AI bubble. The yen depreciated sharply on Wednesday after Finance Minister Satsuki Katayama said there was no specific discussion on foreign exchange during her meeting with Bank of Japan Governor Kazuo Ueda. Traders now speculate that authorities may step in again if the currency weakens toward 160 per dollar, consistent with past intervention levels. Additional pressure came from dollar strength as several Federal Reserve officials signaled that a December rate cut is unlikely.