Ken Kobayashi, head of the Japan Chamber of Commerce and Industry, said the Japanese government missed the opportunity to correct the weakening yen on Tuesday.

The decline of the currency threatens the Japanese economy by driving up the cost of imports. As the yen loses value, the cost of essential goods and energy rises, placing a heavy burden on domestic businesses and consumers.

Kobayashi described the current situation as a "critical phase" as the yen fell to the 162 range against the U.S. dollar [1]. This represents a low not seen in approximately 39.5 years [2]. He said that the combination of currency-driven inflation and rising oil prices is creating a volatile economic environment.

"The government missed the opportunity to correct the yen's depreciation," Kobayashi said.

Global inflation and rising oil prices, fueled by deteriorating conditions in the Middle East, have made the yen more susceptible to selling [3]. While some reports indicate the currency had previously dipped into the 160 range [4], the recent slide toward 162 marks a significant escalation in volatility.

To combat the slide, the Japanese government and the Bank of Japan conducted yen-buying and dollar-selling interventions on April 30 [5]. The total amount spent on those interventions reached 11.7349 trillion yen [6]. Despite this massive expenditure, the currency continued to decline through June.

Kobayashi urged the government to take more decisive action to stabilize the market. He said that if there are measures to be taken, they should be implemented to demonstrate Japan's resolve.

"It is a bit too far, and in addition to currency inflation, oil inflation will emerge from now on, so it has become a very critical phase," Kobayashi said.

“The government missed the opportunity to correct the yen's depreciation.”

The criticism from the Japan Chamber of Commerce highlights a growing rift between the business community and policymakers. While the government attempted a massive 11.7 trillion yen intervention in April, the continued slide suggests that market forces—specifically Middle East instability and global inflation—are overpowering domestic monetary tools. If the yen remains at these historic lows, Japan may face systemic 'cost-push' inflation that erodes household purchasing power regardless of interest rate adjustments.