Japanese Prime Minister Toshimi Suga refuted criticism from the outside world that she has caused the weakening of the yen on one hand, while on the other hand, she has contributed to rising interest rates in Japan.

According to a translation of her speech in Japanese by Reuters, Takashi Hayashi stated in the parliament: "I have been repeatedly criticized for 'Takashi's weak yen' and 'Takashi's high interest rates,' but I firmly deny this."

She made the above statement in response to questions raised by opposition party member Hikushi Hamano regarding Japan's preparation of a second supplementary budget.

Takashi Sanae also stated that the government she leads will enhance market confidence in the Japanese yen by building a strong economy.

During her tenure in office, Japanese government bond yields rose to their highest levels in decades, while the yen fell to its lowest level since 1986, prompting Tokyo and even Washington to enter the foreign exchange market to support the yen.

It was reported that in January this year, Takahashi Sanae stated that the weak Japanese yen presented opportunities for the export industry and served as a buffer against U.S. tariffs. However, she quickly clarified later that she did not have a particular preference regarding the direction of the yen's trend.

The depreciation of the Japanese yen has, to some extent, boosted Japan's exports, as a weaker currency enhances export competitiveness.

In terms of the bond market, Takahashi Sanae stated: "We intend to appropriately control the scale of government bond issuance." Currently, the Bank of Japan is raising policy interest rates and continuing to advance the normalization of monetary policy, which has led to a continuous increase in the yield of Japanese government bonds.

Earlier this year, Takahashi Sanae announced plans to cut Japan's food tax and introduced a supplementary budget, which sparked speculation that Japan might need to issue more government bonds to maintain its spending.

According to Bloomberg, Takahashi Sanae once stated that the total amount of government bonds issued in the calendar year 2026 would remain unchanged from the original budget plan, despite experts expressing skepticism about this.

Expert Director Monex Group stated in April of this year, during the release of the supplementary budget, to CNBC: 'The bond market has many characteristics, but they are not foolish. It is not possible to increase expenditures without increasing debt.'