Japan Firms Find 136.8 Yen to Dollar Desirable: Survey

Tokyo, June 18 (Jiji Press)--Japanese companies on average found 136.8 yen to the dollar the most desirable exchange rate, a survey by Tokyo Shoko Research Ltd. showed.

The Japanese currency has met persistent downward pressure due to the war in the Middle East, hovering at around 160 to the dollar in Tokyo trading Thursday. The gap of more than 20 yen with the desired exchange rate leaves businesses exposed to rising import costs.

The online survey, carried out on June 1-8, received responses from about 6,600 companies across the country.

Of the respondents, 40.7 pct said that a weak yen has a negative effect on business, overwhelming the 3.2 pct who said it has a positive effect.

Wholesalers had the highest proportion of respondents citing negative impacts, at 52.6 pct, followed by retailers, at 49.8 pct. Sectors sensitive to higher purchase costs due to the yen’s depreciation topped the list.

[Copyright The Jiji Press, Ltd.]