Financial Associated Press, May 11 (Editor Zhao Hao) on Thursday (May 9), the president of the Japan Chamber of Commerce and Industry, Ken Kobayashi (Ken Kobayashi), said that at presentBestcryptomininggameThe yen is too weak for small businesses in troubleBestcryptomininggameThe government and the central bank should target the exchange rate at between 120 and 130 yen to the dollar.

As of late Friday in New York, the dollar was trading at 155 yen.Bestcryptomininggame.78, which has risen by more than 10% since the beginning of the year. Kobayashi told the media that the exchange rate of the yen has been maintained at around 150, making small and medium-sized enterprises in a very difficult position. He believes that the 120 range is a more appropriate level for enterprises and can provide them with greater operational flexibility.

"it would be ideal if the authorities could put forward a policy of keeping the yen within that range," Kobayashi said. " It is calculated that to reach the 130 yen mark to the dollar, the yen needs to appreciate by nearly 20% from the current level, and about 30% if it is to reach the 120 mark.

Last week, the USDJPY broke through the 160 mark, reaching as high as 160Bestcryptomininggame.30, a 34-year high. But since then, the currency pair has fallen sharply, and some market participants suspect that the Japanese authorities may have intervened twice. "when the yen hit 160, the government seemed to intervene hastily," Kobayashi said. "

Kobayashi said the authorities could have taken measures at an earlier time. At a news conference on the same day, Kobayashi also stressed that Japan should not hesitate to manipulate its currency as needed. Some traders believe the yen is likely to return to 160 because of the huge spreads on government bonds caused by the divergence between US and Japanese monetary policies.

In March, the Bank of Japan historically lifted massive monetary easing, including negative interest rates and YCC, but the tightening was far from on a par with the Fed, which raised interest rates by 525bp. Kobayashi acknowledged that given corporate financing problems and the potential impact on the economy, it would be difficult for the BoJ to take major measures in the short term.

However, he noted that the possibility that the Bank of Japan would consider further action this summer could not be ruled out, as income tax breaks, bonuses and the influx of summer inbound tourists were all potential factors that could encourage the central bank to act in advance.

Kobayashi added that wage trends are also a key factor for the BoJ to raise interest rates further. "if there is some encouraging news, such as a positive change in real wages or real income, then policy is likely to move in the right direction."

Kobayashi stressed the importance of boosting wages for small and medium-sized enterprises, saying that small businesses are trying to pass on labor costs to customers through price increases, which to some extent limits their room for wage growth. "We must continue to achieve the goal of wage growth of 5% through increased productivity and fair negotiations among enterprises."