Takaichi Links Yen Strength to Trust in Economy

Japan's Prime Minister Sanae Takaichi has linked the country's economic strength to trust in the yen, saying that its slide towards 40-year lows is a 'trust' problem.

In parliament on Monday, Takaichi argued that exchange rates are set by markets but that government can still influence the yen indirectly by lifting Japan's long-term growth potential and competitiveness.

The BOJ, Japan's central bank, controls monetary policy but is required to coordinate closely with the government, according to Takaichi. The message comes at an awkward time for the government, as a Yomiuri Shimbun poll showed rising public frustration with her cost-of-living response.