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

Japanese Prime Minister Sanae Takaichi has stated that her administration's efforts to boost Japan's economic competitiveness will help ensure market confidence in the yen. In a recorded interview, she emphasized that the government's policy is not aimed at manipulating exchange rates.

Takaichi also mentioned that when she met with US President Donald Trump last month, she told him about the yen's undervaluation being a problem. She stated that her administration aims to boost Japan's growth potential by increasing the economy's supply capacity through bold investment in crisis management and growth areas.

The Bank of Japan's interest rate hikes have failed to prop up the yen, which has become a headache for Japanese policymakers due to its weakness pushing up import costs and broader inflation. Takaichi's ambitious spending plans have been criticized for contributing to the yen's weakening and rising bond yields.

Takaichi acknowledged that the budget requests for next fiscal year total 143 trillion yen ($903 billion), but stressed that these figures do not automatically become the size of next year's budget. She stated that the government will carefully assess which policies are necessary and effective before making any decisions.