The Japanese yen rose sharply against the US dollar in Tokyo on Friday, after the main ruling Liberal Democratic Party chose Ishiba Shigeru as its new leader.
Ishiba is a former secretary-general of the LDP. He beat out Economic Security Minister Takaichi Sanae in a runoff.
Before the final outcome, the yen was trading in the mid-146 level against the dollar. But after Ishiba came through with the victory, the yen jumped, with the dollar falling to the lower 142 range.
Analysts say investors had sold the yen on comments by Takaichi during the LDP race indicating she did not favor the Bank of Japan hiking interest rates.
But once Ishiba came out on top, investors rushed back in to buy the yen.