A post-election spike in the yen, quickening advances in China’s yuan to near three-year highs, and market apprehension about a dismal U.S. employment report tomorrow are pushing on the greenback again.

The yen’s rebound appears to be’sell the rumor, buy the fact’ about Prime Minister Sanae Takaichi’s fiscal intentions. After months of turmoil, the currency appears more comfortable with the economic and interest rate implications of fresh stimulus and a more stable political horizon.

Reports that Chinese officials have warned local banks and investors about over-concentration of U.S. Treasury bonds and the dollar may be supporting the yuan spike ahead of the Lunar New Year vacations next week. Over the past year, the U.S. dollar has lost about 6% versus the renminbi, reaching its lowest level since May 2023.