Even leaders of Japanese companies that traditionally gain from a weaker yen are now advocating for a stronger currency. Kawasaki Heavy Industries has stated that if the yen appreciates, it would consider relocating manufacturing capacity back to Japan. Kawasaki Heavy Industries Chairman Yasuhiko Hashimoto remarked on Tuesday at the Gastech international gas technology conference that the yen's volatility is preventing them from formulating a strategy, calling it the company's "biggest challenge." Hashimoto noted that if the yen strengthens to 150 per U.S. dollar, he would contemplate moving production facilities from the United States back to Japan. According to the company's report released last year, Kawasaki Heavy Industries operates 27 production sites overseas, including U.S. plants, alongside 17 domestic facilities in Japan.

Energy giant Inpex President Takayuki Ueda is hoping for further yen appreciation. He stated that 100 yen per U.S. dollar would be a "reasonable" exchange rate suited to Japan's economy. This Japanese petroleum firm conducts nearly 90% of its business overseas and transacts in U.S. dollars, allowing it to convert dollar profits into local currency and benefit from a weaker yen. Although a decline in crude oil sales volume reduced Inpex's first-half revenue year-on-year, the company's financial report mentioned that the yen's 6.7% depreciation, with the exchange rate at one point falling to 158.37 yen per U.S. dollar, partially offset the revenue decline pressure. Ueda said on Monday at the Gastech conference held in Bangkok: "But from the perspective of Japan's overall economy, the current exchange rate might be too low."

Despite a rapid rebound in the yen over the past two weeks, it remains weak on a historical basis. Data from Macrotrends indicates that the average yen-dollar exchange rate over the last decade is around 123; on Thursday, the yen traded at 156.3 per U.S. dollar. The chairman of the world's largest tanker operator, Mitsui O.S.K. Lines, Ken Hashimoto, expressed last week that he hopes for stable foreign exchange markets, suggesting that a range of 150-155 yen per U.S. dollar would feel "appropriate." Mitsui O.S.K. Lines' revenue is primarily denominated in U.S. dollars, which would typically benefit from yen weakness. However, Hashimoto said: "We are concerned that sustained yen weakness could cause disorder in financial markets."

The Bank of Japan's quarterly business sentiment survey released in July shows that Japanese companies expect an average exchange rate of 152.51 yen per U.S. dollar for the second half of the year. Investors anticipate that the Bank of Japan will raise interest rates by 25 basis points to 1.25% at its two-day monetary policy meeting concluding on Friday. Matthew Ryan, head of market strategy at financial institution Ebury, wrote in a research note on Monday: "The outcome of this Bank of Japan decision is critical." He expects the central bank to hike rates and deliver a hawkish tone, effectively signaling support for continued quarterly rate increases.