Many Firms View Significant Yen Declines as Unfavorable, According to BOJ Official – Reuters

By Leika Kihara

In western Japan, many companies are expressing concerns about the excessive depreciation of the yen, according to Kazushige Kamiyama, the manager of the Bank of Japan’s Osaka branch. During a recent news conference following the central bank’s quarterly meeting of regional branch managers, Kamiyama conveyed that a significant number of firms view the yen’s decline as problematic.

"The consensus among these firms appears to be that a significant drop in the yen is undesirable," he noted. However, opinions differed on whether the yen should appreciate further. Kamiyama emphasized that the common agreement was for exchange rates to exhibit moderate fluctuations. This is particularly important for manufacturers in the region who are sensitive to changes in currency markets.

Additionally, Kamiyama mentioned that numerous companies in the area are planning their business strategies with the expectation that the slowdown in exports to China will persist.