Nearly half of Japanese companies view the weak yen as bad for their business, according to a private survey released on Tuesday, suggesting the currency's recent decline is hurting business sentiment and hurting the economic outlook.
The yen's decline to a 24 year low against the dollar is inflating the cost of raw material imports, hurting retailers and households and creating a headache for politicians facing an upper house election next month.
When asked how the yen's decline to around 130 per dollar was affecting the business, 46.7% of companies polled said the impact was negative, according to a survey by Tokyo Shoko Research.
About 21.7% said the yen had both positive and negative effects, while 28.5% said it had no impact. Just 3% said the yen's fall was good for their business.
The ratio of those who felt the yen was negative for their business was 48.2% among smaller companies.
The yen was at 134.55 per dollar on Tuesday after hitting a 24 year low of 135.22 on Monday. It has fallen 14% against the dollar this year.
The survey was sent from June 1 to 9 to 5,667 firms, and 2,649 responded.
Japanese policymakers have escalated verbal warnings against sharp falls in the yen, but their remarks haven't helped slow down the currency's slide.
Many market players believe that the yen will decline as investors focus on policy divergence between the Bank of Japan, which has vowed to keep interest rates low, and its U.S. counterpart, which is planning aggressive rate hikes.