Japan PM vows to underpin yen by boosting economic competitiveness

Japanese Prime Minister Sanae Takaichi pledged on Thursday to bolster Japan's economic competitiveness as a means to strengthen the value of the yen, according to a recorded interview with Nippon Television. Takaichi informed US President Donald Trump that the yen's undervaluation was a concern during their meeting last month. The prime minister emphasized that her administration's economic strategy is not about manipulating exchange rates.

Instead, the focus is on expanding Japan's growth potential by enhancing the economy's ability to supply goods and services through ambitious investments in crisis management and growth sectors. This approach, Takaichi asserted, would enhance Japan's global competitiveness, consequently fostering trust in the yen among investors.

US Treasury Secretary Scott Bessent expressed support for Japan's economic policies during a bilateral meeting with Finance Minister Satsuki Katayama on August 31, with no specific demands raised, according to Takaichi. Takaichi affirmed that Japan remains committed to achieving both economic robustness and fiscal sustainability.