Yen's Drop to New Lows to Deal More Blow to Biz, Households
Tokyo, Oct. 21 (Jiji Press)--The yen's drop past 150 per dollar to levels unseen in 32 years is expected to put heavier burdens on businesses and households in Japan.
A weaker yen has long been seen as a positive factor as it pushes up revenues at export-oriented companies, such as manufacturers.
But the yen's downward trend since early this year has led to higher import costs, a spate of price hikes for food and other products and a decline in consumer spending.
"There are almost no companies even in the manufacturing sector that see benefits from the yen's weakening," Tadashi Yanai, president of Fast Retailing Co. <9983>, the operator of Uniqlo and other casual clothing stores, told a press conference Oct. 13.
"There's rather a disadvantage," Yanai added, emphasizing the negative impact of the yen's depreciation on the Japanese economy as a whole, even on export-oriented companies.
[Copyright The Jiji Press, Ltd.]