The Japanese yen weakened toward 156 per dollar on Thursday, extending losses from the previous session as concerns over Japan’s deteriorating fiscal outlook weighed on the currency. Pressure intensified after Prime Minister Sanae Takaichi reiterated plans for proactive fiscal spending aimed at supporting growth and boosting tax revenues, raising fears of further strain on public finances. Attention is also focused on the Bank of Japan, which begins a two day policy meeting and is widely expected to raise its policy rate by 25 basis points to 0.75% as elevated food costs keep inflation above the central bank’s 2% target. Markets will closely monitor Governor Kazuo Ueda’s post meeting remarks for guidance on the policy outlook for next year, amid speculation that rates could rise to 1% by July. Externally, the yen also softened against the dollar ahead of key US inflation data, while Federal Reserve officials remain divided over the scope for further rate cuts next year.