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

Illustrative photograph reveals Japanese 10,000 yen lender notes distribute out at an workplace of Globe Currency Store in Tokyo in this August 9, 2010 illustrative picture. REUTERS/Yuriko Nakao/File Picture/File Photo/File Image

TOKYO, June 14 (Reuters) – Nearly half of Japanese firms see the weak yen as lousy for their company, a private survey confirmed on Tuesday, suggesting the currency’s latest sharp decrease is hurting business enterprise sentiment and clouding the economic outlook.

The yen’s drop to a 24-calendar year minimal towards the dollar is inflating the value of uncooked materials imports, hurting retailers and homes and building a headache for politicians dealing with an upper house election next thirty day period.

When requested how the yen’s drop to all over 130 for every dollar was influencing their organization, 46.7% of companies polled said the affect was unfavorable, the survey by Tokyo Shoko Study confirmed.

About 21.7% reported the weak yen experienced both of those good and detrimental consequences, when 28.5% mentioned it had no impression. Just 3% claimed the yen’s tumble was excellent for their company.

Among more compact companies, the ratio of individuals who felt the weak yen was unfavorable for their business was 48.2%.

The yen stood at 134.55 per dollar on Tuesday, right after hitting a 24-yr small of 135.22 on Monday. It has fallen 14% in opposition to the greenback this calendar year.

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

Japanese policymakers have escalated verbal warnings from sharp falls in the yen, but their remarks have experienced minor effect in slowing the currency’s slide.

Many industry players assume the yen’s decline to go on as investors target on plan divergence between the Bank of Japan, which has vowed to continue to keep desire rates extremely-low, and its U.S. counterpart, which is planning intense charge hikes.

Reporting by Leika Kihara Enhancing by Bradley Perrett

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