Dissatisfaction with yen depreciation has spread among Japanese companies, including those with high dollar revenues, with Kawasaki Heavy Industries Chairman Kanahana Yoshinori (金花 芳則) and INPEX President Ueda Takayuki (上田 隆之) openly calling for a stronger yen and exchange-rate stability at the Gastech conference.
As dissatisfaction with yen depreciation spreads among Japanese companies, including those with a high proportion of dollar revenues that have previously found it difficult to speak out, Kawasaki Heavy Industries Chairman Kanahana Yoshinori (金花 芳則) and INPEX President Ueda Takayuki (上田 隆之) publicly called for exchange-rate stability at the Gastech energy conference. Because these companies have a high proportion of overseas operations and conduct much of their business in dollars, they expressed concern that fluctuations in the yen's value could affect their long-term strategies. Mitsui O.S.K. Lines Chairman Hashimoto Tsuyoshi (橋本 剛) expressed a similar view.
Companies said that while yen depreciation could increase the yen value of overseas earnings, sharp exchange-rate movements make production allocation, procurement and investment plans more difficult, underscoring the importance of exchange-rate stability. Kanahana indicated that the company might resume considering bringing some US production back to Japan if the yen appreciates and stabilises, while Ueda said he believed ¥100 to the dollar might be an appropriate level for the Japanese economy.
It was also pointed out that exchange-rate conditions affect not only corporate finances but also the macroeconomy, with companies that have a high proportion of dollar-denominated business exposed to the effects of yen appreciation and depreciation in more complex ways. The dollar rose to around ¥156.42 on Thursday, with volatility continuing ahead of the Bank of Japan's policy decision. Some also believe that the US-Japan interest-rate differential and monetary-policy trends will have a significant impact on the yen over the longer term.