Takaichi's Approval Rating Slumps Amid Yen Weakness and Market Pressures

Japanese Prime Minister Sanae Takaichi's administration has seen its approval rating slide to a low of 57%, down from 69% in June, according to a Yomiuri poll conducted between July 24 and 26. This marks the first time her approval rating has dropped below 60% since she took office last year.

Takaichi's government has been under pressure over its expansionary fiscal and monetary policy bias, which has led to a spike in bond yields and a slump in the yen to four-decade lows. The Prime Minister attributed the market pressures to various factors, saying 'exchange rates move on various factors and are set by markets.' She added that boosting Japan's growth potential and strengthening its competitiveness would lead to market trust in the yen.

However, Takaichi's flagship policies have been criticized for pushing bond yields to multi-decade highs. The government has also faced opposition over its plans to cut an 8% levy on food sales, which was a pledge made to cushion the blow from rising living costs. The ruling and opposition parties have failed to reach an agreement on details of the two-year tax suspension idea.