The yen weakened after the ruling bloc failed to win a majority in Sunday's snap election and Japan entered a period of heightened political uncertainty.
On Monday, the currency lost about 1% of its value and was trading at about ¥153.5 to the dollar.
Analysts said that the pace of interest rate increases could be slowed if opposition parties get more say in policymaking. They are seen as more amenable to economic stimulus and less likely to take a hands-off approach when it comes to the Bank of Japan.
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