Japan's Takaichi cites weak yen's benefits even as her government threatens intervention

TOKYO, Jan 31 (Reuters) - Japanese Prime Minister Sanae Takaichi cited some benefits of a weaker yen on Saturday, in stark contrast to her finance ministry's threats to intervene to support the battered currency.

"People say the weak yen is bad right now, but for export industries, it's a major opportunity," Takaichi said in a campaign speech for an election next weekend. "Whether it's selling food or the automobile industry, even though there were U.S. tariffs, the weaker yen has served as a buffer. That has helped us tremendously."

She did not say whether a strong or a weak yen was preferable for Japan, expressing her desire to build an economic structure resilient to currency fluctuations by boosting domestic investment.

But her comments differed sharply from those of Finance Minister Satsuki Katayama, who has repeatedly threatened action as the yen weakened to 18-month lows, contributing to inflation that has prompted the central bank to signal further interest rate hikes.

The yen has spiked three times, notably after reports that the New York Federal Reserve was joining the Japanese authorities in asking banks what exchange rate it would get if it bought the yen - a move that can signal readiness to intervene.

The yen's protracted decline and a recent surge in Japanese government bond yields to record highs are ‍manifesting investor concern about the nation's strained finances.

Takaichi is seeking a mandate for her mission to reflate the economy in the snap election on February 8.