Japan's Prime Minister Says New Policies Will Restore Confidence in the Yen

Japan's Prime Minister said her government's economic policies would help restore confidence in the yen, days after a round of currency intervention by authorities failed to produce a lasting rebound against the U.S. dollar.

Speaking publicly, the prime minister said structural and fiscal measures already underway were intended to strengthen the currency's standing over time, even as the yen has remained under pressure following the earlier intervention effort. She did not announce new emergency measures in her remarks.

The yen has faced persistent weakness against the dollar in recent trading, a trend that has raised import costs for Japanese households and businesses while benefiting the country's export-oriented manufacturers. Previous rounds of currency intervention by Japanese authorities have produced only short-lived effects on the exchange rate.

Analysts have pointed to the gap between U.S. and Japanese interest rates as a key driver of the yen's weakness, with the Bank of Japan maintaining a more cautious policy stance than the U.S. Federal Reserve. Any durable recovery in the currency, they say, is likely to depend on how that rate gap evolves alongside the broader policy direction set out by Tokyo.

The prime minister's comments come amid continued scrutiny of Japan's economic trajectory, with markets watching for further signals from both the government and the Bank of Japan on how they intend to address the currency's prolonged weakness.