Takaichi Defends Policy as Approval Ratings Plummet

Japanese Prime Minister Sanae Takaichi defended her government's policies amidst a slump in approval ratings. The administration's efforts to combat rising living costs have been criticized by over 70% of respondents, who disapproved of steps to address the issue.

Takaichi said that government efforts to boost growth potential would underpin market trust in the yen, despite the currency hitting a 40-year low due to the weak economy. She claimed that exchange rates are set by markets and it's hard to gauge the direct impact of any specific factor.

The Prime Minister also stated that creating a strong economy by boosting its growth potential and strengthening Japan's competitiveness would lead to market trust in the yen. However, her administration's expansionary fiscal and monetary policy bias has caused a spike in bond yields and a slump in the yen.