The sharp fall in the value of the yen is too wild and the government must present a clear vision for resuscitating the nation's economy before the upcoming Upper House election, business leaders said Tuesday.
Jiro Ushio, chairman of the Japan Association of Corporate Executives (Keizai Doyukai), said the yen's depreciation against the dollar does not reflect the current state of the Japanese economy. "The realities of Japan's economy are not as bad as the world thinks," Ushio said. "Once the government can show it is taking steps toward Japan's economic recovery, the yen will get stronger."
Ushio said an exchange rate of about 120 yen to 130 yen to the dollar would more accurately reflect the current state of Japan's economic condition.
He criticized the government for its poor presentation skills and said it needs to announce detailed measures such as tax reforms before the election, scheduled for July 12. "Politicians may be planning to announce important measures after the election, but it will give foreign investors the erroneous impression that Japan plans to do nothing," he said.
Jiro Nemoto, chairman of the Japan Federation of Employers' Associations (Nikkeiren), agreed with Ushio, and warned that it would be risky if the yen continues to plunge. "When the government intervenes in the market (to support the yen,) it must do it jointly with the United States and Europe," he said. "At the same time, the government should also consult with China about ways to stabilize the currency."