Takaichi Vows to Boost Japan's Economic Competitiveness Amid Yen Weakness

Japanese Prime Minister Sanae Takaichi has pledged to boost the country's economic competitiveness as a way to underpin the yen, which has been battered by recent weakness.

Takaichi emphasized that her administration's economic policy is not aimed at manipulating exchange rates, but rather at increasing Japan's growth potential through investments in crisis management and growth areas. She said this would strengthen Japan's global competitiveness, helping ensure market confidence in the yen.

The Prime Minister also noted that US Treasury Secretary Scott Bessent had endorsed Japan's economic policy during a meeting with Finance Minister Satsuki Katayama on August 31, making no specific demands or requests. Takaichi reiterated her administration's commitment to pursuing both a strong economy and sustainable fiscal policy.

The yen has struggled despite the Bank of Japan's interest rate hikes, including one last month, as investors remain concerned about Japan's worsening finances and potential debt issuance. The Prime Minister stressed that budget requests for next fiscal year would be carefully assessed to ensure necessary and effective policies are prioritized.