Prime Minister Sanae Takaichi Denies Responsibility for Weak Yen

Japanese Prime Minister Sanae Takaichi denied responsibility for the depreciation of the yen and rising interest rates during a recent parliamentary session. She rejected criticisms regarding "Takaichi's weak yen" and "Takaichi's high interest rates," asserting that her administration aims to bolster currency confidence by strengthening the national economy.

Under Takaichi's leadership, the yen has dropped to its lowest level since 1986, while government bond yields have hit multi-decade highs. These economic conditions prompted market interventions by both Tokyo and Washington to stabilize the currency.

Takaichi maintained that the government will appropriately control the amount of government bond issuance. She stated that total issuance for 2026 will remain consistent with the original budget plan, despite the introduction of a food tax cut and a supplementary budget earlier this year.