Analysis-In Japan, a weaker yen may not be the blessing it once was

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Reuters

By Tetsushi Kajimoto TOKYO (Reuters) – A weak yen, once seen as favourable for Japan’s exports-focused economy, has now become a pain point as it eats into household finances and confounds policymakers. A gradual shift by Japan’s manufacturers to offshore production means a weak yen has become less of a boon for local exporters than it was about a decade ago. That shift means some at Japan’s finance ministry, which is in charge of currency policy and known to step in to counter sharp yen rises, are now paying more attention to the downsides of a weaker currency, namely the effects of higher im…

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