Japanese executives have warned that volatile exchange rates and a persistently weak yen pose risks to the economy, highlighting concerns that led to a joint Japan‑U.S. currency intervention last week.

The yen fell to a 40‑year low of about 164 per dollar in July, prompting the intervention, which lifted the currency by roughly 5%. Companies that depend on imports face higher costs for energy, materials and food, threatening domestic demand and Japan's gradual exit from deflation.

CFO Kenichiro Fujimoto of Mitsubishi Electric said a weak yen does not guarantee overall health, noting that higher import costs weigh on demand. JETRO chairman Norihiko Ishiguro said exporters do not always benefit because cost increases can outweigh price advantages. Fast Retailing CFO Takeshi Okazaki said the company plans to raise prices on some autumn and winter apparel in Japan by about 4% to offset the yen’s decline. Ryohin Keikaku president Satoshi Shimizu said the firm is increasing in‑house production to reduce reliance on price hikes. Mitsui & Co CFO Makoto Tanaka said he wants market stability and volatility to decline, and that the firm may revise its assumed yen‑to‑dollar rate of 150. Mitsubishi Corp CFO Yoshihiro Shimazu said sharp currency moves complicate earnings forecasts and investment decisions. A JETRO survey in March indicated that 20% of respondents preferred an exchange rate of 120‑124 yen per dollar, while only 11% favored rates above 150 yen; many firms doubt the yen will return to the preferred range.

The outlook for yen appreciation to the 120‑130 yen per dollar level remains uncertain as fundamentals and a weak trade balance persist.