Japan’s PM talks up weak yen as her government tackles currency decline

2026-02-01 - 05:46

Japanese Prime Minister Sanae Takaichi expressed a desire to build an economic structure resilient to currency fluctuation by boosting domestic investment. (EPA Images pic) TOKYO: Japanese Prime Minister Sanae Takaichi has talked up the benefits of a weaker yen in a campaign speech, adopting a tone at odds with her finance ministry which has refused to rule out any options to counter excessive foreign exchange volatility. Takaichi later softened her stance, saying she did not have a preference for the yen’s direction. “People say the weak yen is bad right now, but for export industries, it’s a major opportunity,” Takaichi said on Saturday ahead of a snap election on Feb 8. “Whether it’s selling food or automobiles, even though there were US tariffs, the weaker yen has served as a buffer. That has helped us tremendously.” Takaichi also expressed a desire to build an economic structure resilient to currency fluctuation by boosting domestic investment. The yen has hovered at 18 month lows against the US dollar, contributing to inflation that has raised the prospect of interest rate hikes by the central bank. Finance minister Satsuki Katayama has repeatedly said her ministry will take action to support the currency when necessary, which analysts and traders have widely interpreted as market intervention. In an X post on Sunday, Takaichi said she did not favour a specific yen direction. “I did not say which is better or worse – a strong yen or a weak yen,” Takaichi said in