Takahashi Saori denied the intention to cause the yen to weaken, downplaying the theory that "interest rate hikes are foolish"

The new president of Japan's ruling Liberal Democratic Party, Saane Takaishi, has refuted her claim that the yen will weaken further. The yen had dropped rapidly after her victory.

I have no intention of causing the yen to weaken too much. "But based on experience, I think a weak yen has both advantages and disadvantages," Takashi said in an interview with a TV station. "Considering concerns over Trump's tariffs, it provides a buffer for export-focused companies."

She also tried to downplay her remarks from a year ago that the Bank of Japan's interest rate hike was a foolish move.

When asked if she thought it would be a "stupid" move if the Bank of Japan raised interest rates before the end of the year, Takashi laughed and said, "Oh, please don't mention that." I know I have no position to comment on interest rate hikes."

After the above remarks were made, the Japanese yen strengthened against the US dollar for a while, but then gave up its gains.

Takashi's remarks seem aimed at easing market concerns - investors are worried that her stance in support of stimulus policies might slow down the pace of interest rate hikes by the Bank of Japan and lead to a more accommodative fiscal policy.