Japan's Prime Minister Vows Policies Will Boost Confidence in Yen Amid Weakness
Japanese Prime Minister Sanae Takaichi stated that her government’s policies will enhance market confidence in the yen, following previous efforts—including U.S. intervention—that failed to significantly strengthen the currency. Speaking on Nippon Television, she emphasized that Japan's economic strategy focuses on boosting growth potential through investments rather than manipulating exchange rates. The yen was the best-performing G10 currency in Q3 but remains relatively weak against the dollar. Analysts suggest investors expect further intervention by Japanese and U.S. authorities to support it. Despite a 25 basis point rate hike from the Bank of Japan, depreciation pressures persist due to factors like rising oil prices. Takaichi also addressed concerns about Japan’s large holdings in U.S. Treasuries and assured that fiscal policies will aim to reduce debt-to-GDP ratios while managing bond issuance appropriately.
Topics: FX intervention Japan's economic policy U.S.-Japan relations yen