Mumbai, Oct. 7 -- The Japanese yen weakened toward 158 per dollar on Wednesday as the wide US-Japan yield gap continued to favor the dollar, while relatively low domestic rates and Japan's heavy debt burden kept pressure on the currency. Prime Minister Sanae Takaichi's expansionary fiscal stance added to market scrutiny, although her pledge to fund a food-tax cut without additional bond issuance aimed to reassure investors. The dollar index held near 102 ahead of the Fed minutes, while rising oil prices and Middle East tensions kept inflation and rate-hike concerns elevated.

Published by HT Digital Content Services with permission from Capital Market....