The Japanese business community also voices concerns over the continued low yen… “There is also the aspect of weakening national power.”

by times news cr

2024-05-03 01:57:56

Yanai, chairman of Uniqlo’s parent company, says, “It can’t be good for Japan.”

ⓒNewsis

As the yen continues to weaken against the dollar, there are even speculations that the authorities have intervened, and the Japanese business community is also voicing concerns.

According to TV Asahi on the 3rd, Japan Airlines (JAL) Vice President Yuji Saito related to the weakening yen at a press conference the previous day, saying, “At the current level, especially at the level where the yen is weakening, even if various measures are implemented (aircraft “It will be difficult for customers who ride to return,” he said.

He said that the negative impact of the weak yen is being felt significantly on international flights departing from Japan. He explained that the number of passengers on board aircraft is 50 to 60% of what it was before the COVID-19 incident.

On the same day, Katsuya Nakanishi, president of Mitsubishi Corporation, also said, “Yen represents national power. “The weakening yen also means that our national power is weakening,” he said.

President Nakanishi pointed out that the weakening yen also leads to increases in imported energy prices and prices when acquiring foreign companies.

Previously, on the 11th of last month, Tadashi Yanai, Chairman and President of Fast Retailing, Uniqlo’s parent company, also commented on the value of the yen against the dollar at its lowest level in 34 years, saying, “A low yen cannot be good not only for our company, but also for Japan.” . “This is the basic idea,” he added.

Chairman Yanai said, “When I think about Japan in the world, I think it is strange that people are happy about the weakening yen, and I think it should not exist.”

Recently, the value of the yen against the dollar has been falling every day, hitting a 34-year low.

Accordingly, the view that the Japanese government and the Bank of Japan intervened to purchase yen on the 2nd of this month and the 29th of last month (Korean time) also emerged. This is because the value of the yen rose sharply at that time.

Although the authorities have consistently responded with “no comment” to questions regarding the intervention, the prevailing view in the market is that the authorities may have carried out a ‘masked intervention’. Masked intervention refers to intervention in the market without the authorities making public announcements.

Nihon Keizai Shimbun (Nikkei), a major economic newspaper, said in an editorial on the 3rd, “Response to the weak yen originating from the United States from a mid- to long-term perspective,” that there was a large fluctuation in the yen price that appears to have been caused by government intervention. “For mid- to long-term market stability, we must take full advantage of the weak yen.” “I want to demand measures to draw a blueprint for a revitalizing economy and share it with the market and the public,” he urged.

The newspaper evaluated that “rapid (exchange rate) price fluctuations have a negative impact on companies’ business plans,” and that “(authority’s) intervention is an option in some cases as a means to combat disorderly movements in the market.”

However, “as long as the persistent high inflation in the United States remains behind the weakening yen, it will not be a fundamental solution.” “There is a need to seek a response from a broad perspective,” he pointed out.

The biggest cause of the yen’s weakness is the interest rate difference between the United States and Japan. In the foreign exchange market, there are many views that the interest rate gap between the US and Japan will not decrease for the time being, so the pressure to sell the yen is deep-rooted.

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2024-05-03 01:57:56

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