Japan's Finance Minister Says Boosting Competitiveness Will Support Yen Credibility

According to Jin10, Japan's Finance Minister Satsuki Katayama said on Friday that Japan's strategy of promoting investment and strengthening domestic supply capacity to improve long-term competitiveness and potential economic growth will help support yen credibility. She said that although economic and fiscal policies are not intended to control exchange rates, the measures are meant to enhance Japan's international competitiveness and help Japan win in global competition. Katayama added that if this goal is achieved, yen credibility will naturally be maintained and improved. She made the remarks as the yen remained weak despite joint intervention by the United States and Japan to support it, and markets increasingly expect the Bank of Japan to raise interest rates at its next meeting in September because a weak yen poses a major risk to domestic price stability.