Japanese Executives Call for Stronger Yen Amid Dollar Revenue Concerns

At the Gastech energy conference in Bangkok, two prominent Japanese executives expressed concerns about the weak yen. Yoshinori Kanehana, Chairman of Kawasaki Heavy Industries, and Takayuki Ueda, President and CEO of INPEX, both stated that the yen should strengthen and stabilize. Their remarks are notable because their companies have substantial dollar revenues, which would typically benefit from a weaker currency.

Kanehana said sharp exchange-rate swings make it difficult for his company to formulate long-term business strategy, calling it one of its 'biggest problems'. He mentioned that if the yen stabilized around 150, the company might reconsider shifting some US production back to Japan. Ueda was more direct, stating that from the perspective of Japan's overall economic conditions, the current yen level 'may be too weak', and suggested that ¥100 per dollar could be a more appropriate level.

The executives' comments echo concerns in Washington about yen weakness. Market analysts point out that the US has repeatedly signaled it will not tolerate excessive yen depreciation, and the likelihood of coordinated intervention by US and Japanese monetary authorities is rising. If the Bank of Japan accelerates policy normalization as expected, yen buying momentum could strengthen further.