Japan's Execs Cry Foul Over Weak Yen Costs

Japanese executives are sounding the alarm on the impact of the weak yen on their companies' import costs. The currency's decline has led to higher prices for energy, materials, and food, weighing on domestic demand.

'Problems affecting the entire Japanese economy affect us too,' said Mitsubishi Electric's chief financial officer Kenichiro Fujimoto.

Despite exporters benefiting from a cheaper yen in global markets, many companies are struggling with increased import costs. The Japan External Trade Organization (JETRO) found that nearly 20% of surveyed firms prefer an exchange rate between 120-124 yen to the dollar, while only 11% want rates above 150 yen.

Some companies, such as Uniqlo's owner Fast Retailing, are already planning price hikes to offset the decline in the yen. Others, like Ryohin Keikaku (Muji), are cutting costs by increasing production.