Japan's Takaichi cites weak yen's benefits even as her government threatens intervention

Japanese Prime Minister Sanae Takaichi cited some benefits of a weaker yen on Saturday, in stark ‌contrast to her finance ministry's threats to intervene to support the battered currency. "Whether it's selling food or the ​automobile industry, even though there were U.S. tariffs, the weaker yen has ‍served as a buffer.

Japanese Prime Minister Sanae Takaichi cited some benefits of a weaker yen on Saturday, in stark ‌contrast to her finance ministry's threats to intervene to support the battered currency. "People say the weak yen is ⁠bad right now, but for export industries, it's a major opportunity," Takaichi said in a campaign speech for an election next weekend. "Whether it's selling food or the ​automobile industry, even though there were U.S. tariffs, the weaker yen has ‍served as a buffer. That has helped us tremendously."

She did not say whether a strong or a weak yen was preferable for Japan, expressing her desire to build an economic structure ⁠resilient ‌to currency fluctuations ⁠by boosting domestic investment. But her comments differed sharply from those of Finance Minister Satsuki Katayama, who ‍has repeatedly threatened action as the yen weakened to 18-month lows, contributing to inflation that ​has prompted the central bank to signal further interest rate hikes.

The yen ⁠has spiked three times, notably after reports that the New York Federal Reserve was joining the ⁠Japanese authorities in asking banks what exchange rate it would get if it bought the yen - a move that can signal readiness to intervene. The yen's ⁠protracted decline and a recent surge in Japanese government bond yields to record highs ⁠are ‍manifesting investor concern ‌about the nation's strained finances.

Takaichi is seeking a mandate for her mission to reflate the economy in the snap ⁠election on February 8.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)