Strong yen putting Japanese recovery at risk: JAMA/CJAWU
The comments come from the Japan Automobile Manufacturers Association (JAMA) and Confederation of Japan Automobile Workers’ Unions (CJAWU), which say that the yen’s present exchange rate level threatens the ability to maintain the competitiveness of the country's manufacturing sector.
They added that there are also fears that these currency market conditions will have a profoundly adverse impact on employment throughout Japan’s motor industry, including the parts supply and other vital sectors.
JAMA and the CJAWU said that following the devastating March 11 earthquake and tsunami, automobile production in Japan is at last moving towards recovery. However, the yen’s excessive appreciation risks is putting the recovery of this sector and Japan’s weakened economy at much risk.
As such, the two associations are demanding that the Japanese government 'take swift and effective action aimed at reducing the yen’s current strength'.