Japan Trading Houses Call for Stable Yen to Protect Investments

Some of Japan’s biggest trading houses warned that the recent volatility in the yen is boosting investment risks, and urged authorities to help stabilize the currency.

Whether the yen is strong or weak matters less than stability, Shingo Ueno , chief executive officer of Sumitomo Corp., said in an interview Tuesday. “Higher volatility forces companies to delay investment,” he said, adding that a “slightly stronger yen” would benefit Japan’s broader economy.

Marubeni Corp., another major trading house, echoed these concerns. Investment planning becomes extremely difficult when the currency swings by more than 10 yen against the dollar, as it did last year, Chief Executive Officer Masayuki Omoto said in another interview on Tuesday.

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The yen had a volatile 2025, driven in part by prolonged trade negotiations with the US and uncertainty over interest-rate policy in both Tokyo and Washington. The Japanese currency strengthened to around 140 against the dollar in April, before weakening to near 158 late in the year.

The prompted Finance Minister Satsuki Katayama to signal in December that authorities stand ready to “take bold action” should excessive movements persist. Marubeni’s Omoto called on authorities to intervene, adding that business activity would increase if volatility were better managed.