Arabic version: تاكائيتشي ترفض تحميلها مسؤولية ضعف الين وارتفاع العوائد

According to Cnbc, Japanese Prime Minister Sanae Takaichi rejected criticism that her policies were responsible for both the yen’s weakness and rising interest rates. Speaking in parliament, she said she had been repeatedly criticized for “Takaichi’s weak yen” and “Takaichi’s high interest rates,” but “clearly” denied the claims.

Takaichi was responding to an opposition lawmaker, Yoshifumi Hamano, who asked about compiling a second supplementary budget. She said her administration would increase confidence in the yen by building a strong economy. The yen has weakened to its lowest level since 1986, while Japanese government bond yields have climbed to multi-decade highs.

The currency’s decline prompted Tokyo and Washington to step into the foreign-exchange market to support the yen. Earlier in the year, Takaichi reportedly said a weak yen offered an opportunity for export industries and could act as a buffer against U.S. tariffs, before clarifying that she had no specific preference for the currency’s direction. A weaker yen can make Japanese exports more competitive.

On bond markets, Takaichi said her government intended to “appropriately control the amount of government bond issuance.” Yields have risen as Japan’s central bank raises its policy rate and continues to normalize monetary policy. Takaichi had earlier announced a plan to cut the country’s food tax and unveiled a supplementary budget, raising the prospect of additional borrowing to sustain government spending.

She has said total bond issuance for calendar year 2026 would remain unchanged from the original budget plan, according to Bloomberg, though experts were skeptical. Jesper Koll, expert director at Monex Group, said in April: “Bond markets are a lot of things, but they’re not stupid. You cannot increase spending without increasing debt.”