Japanese Finance Minister Satsuki Katayama defended Prime Minister Sanae Takaichi's comments on the benefits of a weak yen on Tuesday, stating they were general textbook references. The yen weakened beyond 155 to the dollar following the remarks. Katayama agreed that a weak yen has both advantages and disadvantages.
Prime Minister Sanae Takaichi highlighted the benefits of a weak yen for export-oriented industries during an election rally over the weekend, stating it could present a major opportunity. Finance Minister Satsuki Katayama defended these comments during a regular press conference on Tuesday.
"The prime minister was speaking in general terms about the impact of a weak yen on the economy," Katayama said. She explained that Takaichi had referenced "what is written in textbooks," pointing out both negative and positive aspects, including stronger corporate sales from increased domestic investment and easier exports of Japanese products overseas.
Katayama added that she agreed with Takaichi's stance that a weak yen has both pros and cons, suggesting the remarks were a textbook response rather than an emphasis on its merits. This appeared aimed at preserving speculation over potential government intervention in the currency market.
Following Takaichi's speech, the dollar rose back above 155 yen, with the currency sliding to around ¥155 per dollar on Monday and trading near ¥155.50 on Tuesday morning. The tone contrasted with the finance ministry's ongoing efforts to stem the yen's declines.
The episode underscores ongoing debates around Japan's exchange rate policies amid economic pressures.