{"id":73219,"date":"2026-10-18T23:38:15","date_gmt":"2026-10-19T03:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/japan-pm-takaichi-rejects-responsibility-for-weak-yen-taiwan-central-bank-cites-capital-outflows-for-twd-pressure\/73219\/"},"modified":"2026-10-18T23:38:15","modified_gmt":"2026-10-19T03:38:15","slug":"japan-pm-takaichi-rejects-responsibility-for-weak-yen-taiwan-central-bank-cites-capital-outflows-for-twd-pressure","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/japan-pm-takaichi-rejects-responsibility-for-weak-yen-taiwan-central-bank-cites-capital-outflows-for-twd-pressure\/73219\/","title":{"rendered":"Japan PM Takaichi Rejects Responsibility for Weak Yen; Taiwan Central Bank Cites Capital Outflows for TWD Pressure"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Japanese PM Sanae Takaichi strongly denied claims that her administration is driving the yen\u2019s weakness<\/strong> and high interest rates, emphasizing a commitment to fiscal sustainability.<\/li>\n<li><strong>The Taiwan Central Bank attributed the New Taiwan Dollar\u2019s (TWD) recent volatility to massive foreign stock outflows<\/strong> and dividend repatriation by international investors.<\/li>\n<li><strong>Japan&#39;s Finance Minister Satsuki Katayama warned speculators<\/strong> that the government is prepared to take &quot;bold action&quot; if currency moves deviate significantly from economic fundamentals.<\/li>\n<li><strong>A multi-vehicle collision in Kanagawa Prefecture<\/strong> resulted in 13 hospitalizations on October 19, adding to a string of recent high-profile traffic incidents near Tokyo.<\/li>\n<\/ul>\n<p>Japanese Prime Minister <strong>Sanae Takaichi<\/strong> addressed parliament on Monday, October 19, 2026, to &quot;categorically reject&quot; accusations that her policies are responsible for the <strong>weak yen<\/strong> and rising interest rates. Takaichi stated that her administration&#39;s primary goal is to bolster confidence in the currency by fostering a strong economy and maintaining strict control over the issuance of <strong>Japanese government bonds (JGBs)<\/strong> in the upcoming fiscal budget.<\/p>\n<p>The Prime Minister&#39;s remarks come as the yen remains under pressure following earlier market concerns that the government might shift toward a more expansionary fiscal stance. <em>Market analysts suggest that persistent unease regarding fiscal management has contributed to higher long-term sovereign debt yields<\/em>, even as Growth Strategy Minister <strong>Minoru Kiuchi<\/strong> recently noted that Japan no longer requires aggressive reflationary policies.<\/p>\n<p>In Taiwan, the <strong>Central Bank of the Republic of China (Taiwan)<\/strong> reported that the <strong>New Taiwan Dollar (TWD)<\/strong> has maintained relative stability compared to other major currencies, despite facing significant headwinds. The bank identified <strong>foreign stock outflows<\/strong> and the repatriation of dividends as the primary factors weighing on the local currency. On October 15, foreign investors reportedly pulled a record <strong>NT$302.5 billion<\/strong> (approx. <strong>$9.4 billion<\/strong>) from Taiwanese equities in a single session, triggering a sharp intraday plunge in the TWD.<\/p>\n<p>The central bank has been active in &quot;smoothing&quot; volatile capital flows to maintain an orderly market, with foreign exchange reserves standing at <strong>$600.75 billion<\/strong> as of late September. <em>While the TWD has tested the 32-level against the U.S. dollar, the central bank continues to prioritize stability over defending a specific exchange rate level<\/em>, according to recent trading data.<\/p>\n<p>On the domestic front in Japan, emergency services responded to a <strong>multi-vehicle collision<\/strong> in <strong>Kanagawa Prefecture<\/strong>, near Tokyo, which left <strong>13 people hospitalised<\/strong>. The accident occurred during the morning hours of October 19, 2026, adding to regional transport concerns following a fatal four-vehicle crash on the <strong>Tokyo Bay Aqua-Line<\/strong> earlier this month. Authorities are currently investigating the cause of the pileup, which involved several passenger vehicles and commercial trucks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Japanese PM Sanae Takaichi strongly denied claims that her administration is driving the yen\u2019s weakness and high interest 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