Takaichi Defends Economic Policies Amid Slumping Approval Ratings

Japanese Prime Minister Sanae Takaichi defended her government's economic policies in parliament on Monday, saying they would underpin market trust in the yen. The yen has slumped to a 40-year low, and rising living costs have hurt Takaichi's approval ratings.

Takaichi said exchange rates are set by markets and that creating a strong economy through growth potential and competitiveness would lead to market trust in the yen. She made this statement when asked about opposition claims that her administration's reservations over the Bank of Japan's rate-hike plans contributed to the yen's decline.

The approval rating for Takaichi's administration fell to 57% in July, down from 69% in June and the first time below 60% since she took office. Disapproval rose to 34%, with 71% disapproving of her efforts to combat rising living costs.