Japanese Business Leader Urges Government Action on Yen Weakness

The leader of Japan's largest small business group has called on the government to take more decisive action to address currency issues, warning that the weakening yen is squeezing small businesses and jeopardizing wage increase plans. According to Jin10, Ken Kobayashi, Chairman of the Japan Chamber of Commerce and Industry (JCCI), stated in an interview on Friday that the current yen exchange rate is excessively weak and authorities should focus more on currency matters. He cited a business survey indicating that an exchange rate of around 130 yen to the dollar would be ideal. The chamber represents over 1.2 million small businesses nationwide. Kobayashi noted that recent exchange rate fluctuations are largely driven by market speculation. He believes the government should respond with a full set of foreign exchange tools, including intervention, rate checks, and verbal warnings. While he appreciates the government's recent efforts to address the yen's decline, he considers these measures too small compared to what he deems appropriate. Kobayashi emphasized that the issue is not merely about changes from 159 to 152.