Takaichi Pledges to Boost Yen with Economic Competitiveness Drive

Japanese Prime Minister Sanae Takaichi has pledged to strengthen the yen by boosting Japan's economic competitiveness. In an interview aired by Nippon Television, she said that her administration aims to increase the economy's supply capacity through investment in crisis management and growth areas.

Takaichi also stated that the government will carefully assess which policies are necessary and effective between now and the end of this year. She emphasized that setting clear priorities is part of their broader effort to reform the budget process.

The Prime Minister met with US President Donald Trump last month, during which she mentioned that the yen's undervaluation was a problem. US Treasury Secretary Scott Bessent endorsed Japan's economic policy and made no specific demands when Finance Minister Satsuki Katayama met him for bilateral talks on August 31.

Takaichi's ambitious spending plans have been criticized for weakening the yen and pushing up bond yields, as investors fret about Japan's worsening finances. The administration's budget requests for next fiscal year totalled 143 trillion yen ($903 billion), which may increase further due to defence spending and other items without specified amounts.