On July 19, the Japan Automobile Manufacturers Association (JAMA) and the Confederation of Japan Automobile Workers' Unions (CJAWU) have commented on current forex rate levels. Accordingly, recent foreign exchange rate movements resulting the Japanese yen reaching its highest level against both the U.S. dollar and the euro in four months, surged in value exceeds the capacity, at the corporate level, to address drastic appreciation through cost-cutting and other measures.
JAMA and CJAWU added that, with the July 1st signing of the free trade agreement between South Korea and the European Union, Japan lagged behind in the area of bilateral agreements. The rise of the yen and the fall of the South Korean won, against the euro further undermine the business environment for Japan's automotive industry.
JAMA and the CJAWU who indicate that these realities threaten also Japan's domestic manufacturing sector, called on the Japanese government to take prompt action aimed at rectifying the current strength of the yen.