Asian FX markets stayed near flat on Thursday while the yen hovered close to an 18‑month low after Prime Minister Sanae Takaichi hinted at a February snap election. Traders view her pro‑spending stance as bearish for the currency, fearing renewed stimulus could keep the Bank of Japan from tightening policy.

In South Korea, the won erased earlier gains after Treasury Secretary Scott Bessent posted on social media that the currency’s slide conflicted with fundamentals. The Bank of Korea left its benchmark rate at 2.5% and hinted the easing cycle is ending, adding pressure on the won amid broader regional volatility.

President Donald Trump told Reuters he has no plan to dismiss Jerome Powell, calming worries about Fed independence but leaving rate‑path uncertainty intact. Meanwhile the US Dollar Index held near one‑month highs, keeping other Asian currencies, including the yuan and Singapore dollar, largely unchanged as markets digest mixed political signals.