Takaichi Vows to Boost Economic Competitiveness, Support Yen

Japanese Prime Minister Sanae Takaichi has vowed to strengthen the yen by boosting Japan's economic competitiveness. In an interview, she stated that her administration aims to increase the economy's supply capacity through investment in crisis management and growth areas, thereby strengthening global competitiveness and ensuring market confidence in the yen.

Takaichi also mentioned that she discussed the yen's undervaluation with US President Donald Trump last month. She clarified that Japan's economic policy is not aimed at manipulating exchange rates but rather focused on promoting growth and stability. US Treasury Secretary Scott Bessent has endorsed Japan's economic policy, and Takaichi emphasized that there will be no change to their stance of pursuing a strong economy and sustainable fiscal policy.

However, the yen's weakness remains a pressing concern for Japanese policymakers due to its impact on import costs and inflation. The Bank of Japan's interest rate hikes have failed to prop up the yen, and Takaichi's ambitious spending plans have been criticized for exacerbating the problem. The administration is requesting a budget of 143 trillion yen for next fiscal year, which has raised concerns about additional debt issuance.

Takaichi assured that the government will carefully assess which policies are necessary and effective before setting clear priorities. She emphasized that the goal is to steadily lower Japan's debt-to-GDP ratio and manage bond issuances appropriately.