The Singapore dollar’s USD/SGD edged down 0.1%, the South Korean won’s USD/KRW pair traded flat, while the Chinese yuan’s offshore pair USD/CNH rose 0.1%

Most Asian currencies were little changed on Tuesday, while the yen hit two-month lows after the election of fiscal dove Sanae Takaichi as Japan’s ruling party leader.

The US Dollar Index, which measures the dollar against a range of major currencies, edged 0.1% higher after modest gains on Monday. US Dollar Index Futures were largely unchanged as of 04:30 GMT on Tuesday.

The yen weakened further against the dollar on Tuesday, with the USD/JPY pair hitting a 2-month high of 150.62 yen.

The pair jumped almost 2% on Monday, after Takaichi secured the Liberal Democratic Party leadership over the weekend. Her victory paves the way for her to become Japan’s next prime minister.

Takaichi, known for her support of aggressive fiscal spending, has criticised the BOJ’s previous attempts to raise interest rates and signalled a preference for looser monetary policy.

Traders swiftly scaled back expectations for further tightening after her election victory.

Her election was somewhat of a surprise, and the yen’s 2% drop versus USD is a testament to that, ING analysts said in a note.

However, ING analysts added that they see limited upside for USD/JPY, noting that a weaker yen could worsen Japan’s cost of living. They see a break above 150 as temporary rather than the start of a sustained rally.

Elsewhere in Asia, most currencies traded in tight ranges.

The Singapore dollar’s USD/SGD edged down 0.1%, while the South Korean won’s USD/KRW pair traded flat.

The Chinese yuan’s offshore pair USD/CNH rose 0.1%. Mainland markets were closed for public holidays.

The Australian dollar’s AUD/USD pair was largely steady.

The Indian rupee’s USD/INR pair rose 0.1%, remaining near record highs reached last month.