Japan’s Takaichi vows to build economy ‘resilient to exchange rate fluctuations’

ISTANBUL

Japanese Prime Minister Sanae Takaichi on Sunday vowed to build an economy “resilient to exchange rate fluctuations” in an attempt to clarify remarks she made the previous day that risked being interpreted as an endorsement of a weaker yen.

"What I intended to convey was solely that 'we want to build a strong economy that is resilient to exchange rate fluctuations.' Contrary to some media reports, I did not 'stress the benefits of yen depreciation.' I hope this clarifies my true intention." Takaichi wrote on US social media company X.

“Regarding the impacts of yen depreciation on the economy, I mentioned both the negative and positive aspects in general terms,” she added.

On Saturday, Takaichi praised the yen's recent depreciation for boosting exporters and returns from the government's foreign exchange fund, according to the Kyodo news agency.

"People say a weak yen is bad, but for export industries, it is a major opportunity. The management of the Foreign Exchange Fund Special Account is also doing very well," she said in a speech at a street rally in Kawasaki near Tokyo on Saturday.

Yoshihiko Noda, co-leader of the newly formed main opposition Centrist Reform Alliance, criticized the government at a rally earlier on Saturday for failing to address the yen’s decline, warning that it could further drive up import costs.

Japan is heading toward a snap general election on Feb. 8, with more than 1,270 candidates vying for 465 lower house seats in the first election since Takaichi assumed office on Oct. 21.

According to a Kyodo survey released on Sunday, 36.1% of attendants plan to vote Takaichi’s ruling Liberal Democratic Party, while 13.9 % said they would vote for the Centrist Reform Alliance.

ISTANBUL

“Regarding the impacts of yen depreciation on the economy, I mentioned both the negative and positive aspects in general terms,” she added.

On Saturday, Takaichi praised the yen's recent depreciation for boosting exporters and returns from the government's foreign exchange fund, according to the Kyodo news agency.

Japan is heading toward a snap general election on Feb. 8, with more than 1,270 candidates vying for 465 lower house seats in the first election since Takaichi assumed office on Oct. 21.

According to a Kyodo survey released on Sunday, 36.1% of attendants plan to vote Takaichi’s ruling Liberal Democratic Party, while 13.9 % said they would vote for the Centrist Reform Alliance.