Nearly Half of Japan Firms See Weak Yen as Bad for Business – Survey | Investing News
TOKYO (Reuters) – Nearly half of Japanese firms see the weak yen as bad for their business, a non-public survey confirmed on Tuesday, suggesting the currency’s recent sharp drop is hurting enterprise sentiment and clouding the economic outlook.
The yen’s decline to a 24-calendar year small versus the greenback is inflating the price of uncooked product imports, hurting retailers and households and generating a headache for politicians going through an higher house election future thirty day period.
When questioned how the yen’s decline to about 130 per dollar was influencing their organization, 46.7% of organizations polled said the impact was unfavorable, the survey by Tokyo Shoko Research showed.
About 21.7% explained the weak yen experienced both of those good and destructive effects, even though 28.5% reported it experienced no impact. Just 3% said the yen’s tumble was great for their business enterprise.
Amid smaller companies, the ratio of people who felt the weak yen was damaging for their small business was 48.2%.
The yen stood at 134.55 for every greenback on Tuesday, immediately after hitting a 24-yr reduced of 135.22 on Monday. It has fallen 14% in opposition to the greenback this calendar year.
The poll questionnaire was sent from June 1 to 9 to 5,667 firms 2,649 replied.
Japanese policymakers have escalated verbal warnings from sharp falls in the yen, but their remarks have had tiny influence in slowing the currency’s slide.
Many sector gamers expect the yen’s decrease to proceed as investors aim on coverage divergence involving the Lender of Japan, which has vowed to hold desire prices ultra-low, and its U.S. counterpart, which is scheduling aggressive fee hikes.
(Reporting by Leika Kihara Modifying by Bradley Perrett)
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