Japan Execs Fear Weak Yen Will Wreak Economic Havoc

Japanese executives are increasingly warning that currency fluctuations and a persistently weak yen pose significant risks to the economy. This concern is evident in their comments following last week's joint Japan-U.S. intervention to support the currency.

The yen hit a 40-year low at nearly 164 to the dollar in July, prompting the intervention which lifted the yen by around 5%. Despite this, many executives are still concerned about the impact of a weak yen on their businesses.

Chief Financial Officer Kenichiro Fujimoto of Mitsubishi Electric noted that problems affecting the entire Japanese economy also affect his company. He stated, 'A weak yen does not necessarily mean all is well.'

Norihiko Ishiguro, chairman of the Japan External Trade Organization (JETRO), said that while a weaker yen has advantages for exports, it can also increase costs for raw materials and energy imports.