Foreign Currency

Japan firms reach pain threshold as yen keeps testing lows against the dollar

Japan’s companies are expressing unusual discomfort with the weak yen, just as the country’s government appears to be stepping in to prop up the tumbling currency.

The yen briefly crossed the ¥160 to the dollar level earlier this week. It has since gained to around ¥156 after suspected intervention.

Traditionally, exporters welcome a weaker yen as it boosts income from exports paid for in dollars and other foreign currencies. Companies that mostly rely on the domestic market or depend heavily on imports suffer from higher costs. But the currency’s sustained decline has made planning difficult for all firms.

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