By Leika Kihara
TOKYO (Multibagger) -Many companies in western Japan saw excessive yen declines as undesirable, Kazushige Kamiyama, the Bank of Japan's Osaka branch manager, said on Monday.
"Quite a large number of firms seem to share the view it was problematic for the yen to decline too much," he told a news conference after attending the BOJ's quarterly meeting of regional branch managers.
"The views varied, however, on whether the yen should rise further. What the firms all agreed was that exchange-rate swings should be moderate," said Kamiyama, who oversees the region that is home to big manufacturers sensitive to currency market moves.
Kamiyama also said many firms in the region are setting business plans on the assumption the slowdown in exports to China will continue.
Analysis:
The Bank of Japan's Osaka branch manager, Kazushige Kamiyama, expressed concerns over the excessive declines of the yen in western Japan. Many firms in the region view the sharp decline of the yen as problematic and are in agreement that exchange-rate fluctuations should be kept moderate. This sentiment is particularly strong among big manufacturers in the area who are sensitive to currency market movements. Additionally, businesses in the region are adjusting their plans due to the ongoing slowdown in exports to China.
For individuals and investors, this news highlights the importance of monitoring currency fluctuations, as they can have a significant impact on businesses and the overall economy. Understanding how currency movements can affect trade and exports is crucial for making informed investment decisions. It is advisable to stay informed about global economic developments and their implications for different industries and markets.