The dollar was last up 0.27% at 153.09 yen after earlier reaching 153.23, the highest since February 13

The yen dropped to its weakest level against the dollar since mid-February on Thursday as the newly elected leader of Japan’s ruling party Sanae Takaichi failed to instil confidence in the market about the direction of the currency.

Takaichi said she did not want to trigger excessive declines in the yen, which led to a brief rally, before the currency weakened back to its lows of the day.

We did see an uptick there briefly, at least it indicates that they’re watching, but we don’t really know what excessive means in the context for what you’re going to tolerate, said Adam Button, chief currency analyst at investingLive in Toronto.

Takaichi added that “there are pros and cons to a weak yen.”

The dollar was last up 0.27% at 153.09 yen after earlier reaching 153.23, the highest since February 13.

The yen has dropped this week on concerns that Takaichi will introduce more fiscally expansive policies.

The yen has slowed its decline, however, as traders evaluate how much room she will have to stimulate the economy.

Traders are turning a little bit more sceptical on the Takaichi administration’s capacity for passing fiscal stimulus and pushing back against the Bank of Japan’s tightening plans, said Karl Schamotta, chief market strategist at Corpay in Toronto.

That’s a reflection of underlying inflation dynamics in Japan. The reality is that Japanese households are agitating for change because inflation is running at elevated levels, Schamotta said.

Takaichi said that the country’s central bank is responsible for setting monetary policy but that any decision it makes must align with the government’s goal.

The euro, meanwhile, has declined since French Prime Minister Sebastien Lecornu tendered his resignation and that of his government on Monday.

The single currency was last down 0.61% at $1.1555 and reached $1.1545, the lowest since August 5. The dollar index gained 0.62% to 99.47, the highest since August 1.