Ken Kobayashi, the head of the Tokyo Chamber of Commerce and Industry, said that the Japanese authorities should consider conducting coordinated currency interventions with other countries to support the yen, which has reached a new 34-year low against the US dollar.
The fall in the yen triggered an increase in import prices, which negatively affected consumption (in February, household spending declined for the 12th month in a row). Kobayashi added that while the depreciation of the yen helped industries with a high share of foreign sales (exports increased by 7.3% in March), small and medium-sized Japanese companies focused on domestic demand faced difficulties amid higher prices for imported materials.
Kazuo Momma, a former official at the Bank of Japan, said that the Central Bank may have to react to the weakening of the national currency, adding that a weak yen is a problem for households and businesses.
In addition, yesterday, South Korea's finance minister and his Japanese counterpart expressed "serious concern" about the recent weakening of their currencies and warned of the need to take appropriate measures to counter any sharp volatility.