Takaichi Defends Yen-Boosting Policies Amid Slumping Approval Ratings

Japanese Prime Minister Sanae Takaichi defended her administration's policies, saying they will boost Japan's growth potential and strengthen market trust in the yen. The yen has been sliding to a 40-year low, causing rising living costs that have hit Takaichi's approval rating.

Takaichi made the remarks when asked by an opposition lawmaker if the yen's slump could be caused by her administration's reservations over the Bank of Japan's rate-hike plans. The Prime Minister stated that exchange rates are set by markets and hard to gauge, but creating a strong economy through growth potential and competitiveness would lead to market trust in the yen.

Takaichi's approval rating slumped in July to 57%, down from 69% in June, with those who disapproved of her administration's efforts to combat rising living costs increasing to 71%. The slump adds to headaches for Takaichi, who has seen her expansionary fiscal and monetary policy bias cause a spike in bond yields and a slump in the yen.