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Japan business lobby to discuss negative impact of weak yen -Yomiuri

Published 11/27/2023, 07:56 PM
Updated 11/28/2023, 12:26 AM
© Reuters. FILE PHOTO:Coins and banknotes of Japanese yen are seen in this illustration picture taken June 16, 2022. REUTERS/Florence Lo/Illustration/ File Photo

By Tetsushi Kajimoto and Leika Kihara

TOKYO (Reuters) -Japan's top business lobby Keidanren will discuss at next month's executive meeting the potential negative impact of the yen's weakness on the economy.

Keidanren, which is comprised of major companies including big automakers and electronics firms, traditionally favoured a weak yen and have called on the government to stave off sharp yen rises that make Japan's exports less competitive overseas.

Any discussion on the demerits of a weak yen by Keidanren would highlight a shift in how Japan's business sector views the currency's movement and its impact on the economy.

The informal executive meeting, to be held on Dec. 4, reflects growing concern by some member companies over those demerits, and will likely affect the lobby's policy proposals in the future, the Yomiuri said without citing sources.

© Reuters. FILE PHOTO:Coins and banknotes of Japanese yen are seen in this illustration picture taken June 16, 2022. REUTERS/Florence Lo/Illustration/ File Photo

The shift in Keidanren's stance could heighten calls by the business sector for the Bank of Japan to end ultra-low interest rates that have been blamed for accelerating the yen's decline, the newspaper said.

An official at Keidanren confirmed to Reuters that the executives' meeting will discuss the weak yen as part of a broad range of topics including rising inflation.

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