Japan PM vows to underpin yen by boosting economic competitiveness

Japanese Prime Minister Sanae Takaichi has pledged that the government's initiatives to enhance the nation's economic competitiveness will foster confidence in the yen's market value, as reported by Nippon Television on October 1. During a conversation with U.S. President Donald Trump in September, Takaichi raised concerns about the yen's perceived undervaluation.

Takaichi clarified that her administration's economic strategies are not intended to manipulate exchange rates. Instead, the focus is on enhancing Japan's growth potential by increasing the economy's production capabilities through substantial investments in crisis management and growth sectors. This approach is expected to bolster Japan's global competitiveness, thereby promoting market confidence in the yen.

US Treasury Secretary Scott Bessent also expressed support for Japan's economic policy during bilateral discussions with Finance Minister Satsuki Katayama on August 31, although no particular demands were made. Takaichi reiterated that the government's commitment remains steadfast in striving for both a robust economy and a fiscally responsible policy.