Japan’s government is prepared to take any “necessary” measures in the foreign exchange market, Prime Minister Sanae Takaichi said on Wednesday. She noted that authorities are watching closely to determine whether recent currency movements reflect real economic fundamentals or are being driven by speculative activity.
Speaking in parliament in response to questions about the yen’s recent weakness, Takaichi said the government is monitoring market developments carefully, including Japanese government bond (JGB) yields and exchange-rate fluctuations.
She also defended her administration’s economic stimulus package, rejecting criticism that it amounted to “reckless spending.” Takaichi emphasized that her government remains committed to reducing Japan’s debt-to-GDP ratio while keeping a close watch on bond yields.
“What matters most to me is ensuring Japan’s long-term fiscal sustainability,” she said.
