Nearly half of Japan firms see weak yen as bad for business, survey shows

Illustrative image exhibits Japanese 10,000 yen bank notes spread out at an place of work of World Currency Store in Tokyo in this August 9, 2010 illustrative picture. REUTERS/Yuriko Nakao/File Photo/File Picture/File Photograph

TOKYO, June 14 (Reuters) – Almost 50 % of Japanese firms see the weak yen as poor for their enterprise, a private survey showed on Tuesday, suggesting the currency’s recent sharp decrease is hurting organization sentiment and clouding the financial outlook.

The yen’s decrease to a 24-yr minimal in opposition to the dollar is inflating the value of uncooked substance imports, hurting shops and households and building a headache for politicians dealing with an higher house election subsequent month.

When requested how the yen’s decline to close to 130 for every greenback was impacting their enterprise, 46.7% of corporations polled said the effect was detrimental, the survey by Tokyo Shoko Investigation showed.

About 21.7% reported the weak yen experienced the two beneficial and destructive results, even though 28.5% explained it had no effects. Just 3% stated the yen’s tumble was very good for their organization.

Among smaller sized corporations, the ratio of these who felt the weak yen was detrimental for their company was 48.2%.

The yen stood at 134.55 per greenback on Tuesday, just after hitting a 24-12 months minimal of 135.22 on Monday. It has fallen 14% from the dollar this yr.

The poll questionnaire was despatched from June 1 to 9 to 5,667 companies 2,649 replied.

Japanese policymakers have escalated verbal warnings from sharp falls in the yen, but their remarks have had minimal outcome in slowing the currency’s slide.

Numerous market gamers anticipate the yen’s drop to continue on as buyers concentrate on policy divergence in between the Lender of Japan, which has vowed to maintain fascination premiums ultra-reduced, and its U.S. counterpart, which is scheduling aggressive charge hikes.

Reporting by Leika Kihara Editing by Bradley Perrett

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