Japan’s Push to Bolster Yen Confidence Amid Ongoing Weakness

Prime Minister Sanae Takaichi told Nippon Television that her administration’s economic policy is intended to raise market confidence in the yen, not to manipulate exchange rates. She said she had raised the issue of the yen’s undervaluation with U.S. President Donald Trump during a conversation last month.

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The yen’s depreciation has been a persistent concern for Japanese policymakers. A joint U.S.–Japan intervention earlier this year, combined with the Bank of Japan’s 25-basis-point rate hike in September, helped the yen become the G10’s top-performing currency in the third quarter, gaining 3.3 % against the dollar according to Deutsche Bank data.

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In addition to the prime minister’s remarks, foreign-exchange strategists highlighted market expectations. Kit Juckes, chief FX strategist at Societe Generale, observed a strong perception that additional USD/JPY intervention is probable in the near term, with pricing reflecting investors’ reluctance to be caught off-guard. OCBC Group Research analysts Sim Moh Siong and Christopher Wong warned that while the threat of further intervention may curb disorderly moves, sustainable improvement requires domestic policy support.

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• Dollar/yen exchange rate: 158.37 yen per dollar as of early Thursday morning, down from a peak above 163 in late July.

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• Yen’s year-to-date appreciation: approximately 7.65 %.

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• Third-quarter performance: +3.3 % versus the dollar, per Deutsche Bank data.

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• “Our economic policy is not aimed at manipulating exchange rates,” — Sanae Takaichi

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These statements and figures illustrate the Japanese government’s effort to pair diplomatic outreach with domestic reforms in hopes of stabilizing the yen and enhancing Japan’s economic outlook.

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