JPY: Weakness concerns amid intervention – BNY

The Japanese Yen remains under pressure, with concerns raised by local business leaders about its excessive weakness impacting profitability and wage growth. The chairman of the Japan Chamber of Commerce and Industry has urged the government to take stronger action on foreign exchange policy, calling for potential intervention, notes Bob Savage, Head of Markets Macro Strategy at BNY.

Calls for intervention on weak yen

"Japan’s leading business group representing small firms has urged the government to take stronger action on foreign exchange, warning that the weak yen is eroding profitability and threatening wage growth."

"Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, said the yen is 'excessively weak' and argued that authorities should focus more closely on currency policy, citing an exchange rate of around ¥130 to the dollar as more appropriate based on corporate surveys."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)