On Tuesday, the Japanese yen fell to its lowest level in three months due to increased uncertainty regarding political and financial perspectives in Japan related to the repercussions of the coalition's defeat. Analysts note that "the market is very nervous in light of potentially unstable situations" and is influenced by the direction of actions from central banks and government. Stability and predictability are what the financial market values most, and in this case, it could lead to further weakening of the yen. One of the analysts noted: "Currently, there is a very high level of uncertainty... This may lead to larger fluctuations in the exchange rate." Political instability in the country negatively affects its national currency, causing demand for other currencies.
