As the weak yen continues without end in sight, there has been no indication domestically that Prime Minister Takaichi Sanae (高市 早苗) will change course, and the realities of exchange rates and their impact on export companies are being discussed. The article also introduces Richard Katz's observations and examines the background to the weak yen and its future direction.
The yen remains weak. Japan-focused journalist Richard Katz says that “the yen's real value has fallen substantially from 50 years ago,” and questions the Abe administration's view that a weak yen benefits Japan. The article is presented as a re-edited version of that discussion.
The factors behind the weak yen are said to include Japan's declining competitiveness over the long term and the pricing of exports. While some companies increase profits by lowering the yen while maintaining the dollar-denominated prices of their exported products, the article explains that the weaker the yen becomes, the more adjustment is required from exporters.
In 2024, a weak-yen level of approximately ¥124 to the dollar was required, compared with a break-even point of ¥100 to the dollar before 2024. One view is that the Trump administration's 15% tariffs would create conditions in which companies would need an even weaker yen.
The article organizes the arguments for and against the Prime Minister's view that a weak yen benefits Japan, as well as the profitability of export companies and the impact of exchange rates. It does not offer specific forecasts for future exchange-rate trends or policy changes.
(The above elements are a summary based on the article's statements and avoid additional speculation or supplementary figures.)