Japanese business groups urge government to act on weak yen

Two major Japanese business groups urged the government to deal with the weak yen, saying it is pushing up import costs and hurting households and companies.

Yoshinobu Tsutsui, head of Japan’s largest business lobby Keidanren, said the weak yen is often praised for helping exporters make more profit. But he said that for Japan’s long-term strength, it would be better to move toward a stronger yen.

In 2025, the yen did not benefit much from a weaker U.S. dollar, even though the Bank of Japan raised interest rates twice. While the yen’s fall and rising inflation helped convince the government to approve a rate hike last month, uncertainty about future hikes has limited the yen’s recovery.

The yen ended the year at about 157 per dollar, close to levels that previously led officials to warn about currency weakness. Japan last intervened in July 2024, when it bought yen after the currency fell to a 38-year low.

In a separate interview, Ken Kobayashi, head of the Japan Chamber of Commerce and Industry, said the weak yen is raising raw material costs for small and medium-sized businesses. He added that the government and the Bank of Japan need to reduce the feeling of powerlessness among small business owners who rely on imported materials.