Takaichi's Approval Rating Slumps as Yen Weakness Takes Toll on Japanese Economy

Japanese Prime Minister Sanae Takaichi's approval rating has hit its lowest point since she took office, according to a recent poll. The Yomiuri newspaper reported that her administration's approval rating fell to 57% in July, down from 69% in June.

The slump in popularity is attributed to rising living costs caused by the weak yen and inflation. Takaichi acknowledged that market pressures and opposition from within her own party have delayed a decision on cutting an 8% levy on food sales, a pledge she made to cushion the blow from rising living costs.

In response to criticism, Takaichi stated that creating a strong economy by boosting its growth potential and strengthening Japan's competitiveness would lead to market trust in the yen. However, she failed to address concerns about her administration's expansionary fiscal and monetary policy bias, which has caused bond yields to spike and the yen to slump to 40-year lows.

Kenji Yamamoto, chief market economist at Daiwa Securities, said that while Takaichi's approval ratings remain high compared to past administrations, her 'enormous political capital' gained from the lower house election victory is gradually diminishing.