The dollar and oil are rising and the yen is falling at the beginning of the week
Japanese stocks rose on Monday as the week began trading by more than 5% to an all-time high, Japan's Nikkei index (NI225) rose above 48,000 points for the first time ever, while the yen fell on Monday after the election of Sanae Takaishi, a moderate fiscal and monetary-oriented leader of the ruling party, putting her on her way to becoming the country's first female prime minister.
The US dollar also rose to its highest level in 10 days with the weakening of the Japanese yen, the dollar-yen pair opened on a large price gap to the upside, and is now trading above the 150 USD levels.
Takaichi is seen as a supporter of economic stimulus, and is likely to pursue looser fiscal and monetary policies.
However, Jefferies still expects the BOJ to raise interest rates again in early 2026. The dollar also received support from rising oil prices after the organization of the Petroleum Exporting Countries (OPEC) and its allies announced their agreement to increase production in November.
OPEC announced on Sunday that it will increase production by 137 thousand barrels per day from November, the same modest monthly increase as in October, amid persistent fears of imminent oversupply.
In the run-up to the meeting, sources said that Russia was calling for an increase in production by 137 thousand barrels per day to avoid pressure on prices, but Saudi Arabia would have preferred to double, triple or even quadruple this figure to regain market share more quickly.
