A Japanese government spokesman on Monday rejected claims that Prime Minister Sanae Takaichi aimed to promote the yen’s depreciation during a recent campaign speech ahead of the general election. The remarks sparked backlash from opposition parties and concerns about further currency weakening.
Deputy Chief Cabinet Secretary Masanao Ozaki clarified at a press conference that Takaichi only voiced hopes for “a strong economy resilient to exchange rate fluctuations.”
In her Saturday stump speech in Kawasaki, near Tokyo, for the House of Representatives election on Sunday, she stated: “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.
“Takaichi omitted any mention of the weak yen’s downside, like rising consumer prices. The next day, she posted on social media in Japanese and English, claiming her words were “misunderstood” to limit market fallout.
A weaker yen boosts exports by cheapening Japanese goods abroad and inflating overseas earnings in yen, but it hikes import costs. Japan, short on resources, depends heavily on imports for food and energy.