Takaichi Assures Yen Confidence Amid Weak Currency

Japanese Prime Minister Sanae Takaichi is assuring investors that her government's spending and investment agenda will ultimately support confidence in the yen, despite the currency remaining weak.

Takaichi said her administration aims to boost Japan's growth potential by increasing the economy's supply capacity through bold investment in crisis management and growth areas. This effort would strengthen Japan's global competitiveness, thereby helping ensure market confidence in the yen.

The government's fiscal plans are at the center of this tension. Budget requests for the next fiscal year have reached ¥143 trillion ($903 billion), close to pandemic-era levels, but Takaichi reassured investors that the record requests would not automatically translate into a similarly large final budget.