A top executive at one of the world's largest shipping firms has cautioned that extreme movements in the Japanese yen could trigger significant instability in global financial markets.

Takenori Hashimoto, Chairman of Mitsui O.S.K. Lines, stated that a weaker yen generally benefits the company, as a substantial portion of its revenue is settled in US dollars. However, he expressed concern about the broader implications of the currency's volatility. "We are concerned that a weak yen will cause turmoil in the financial market," he said in an interview. Hashimoto indicated that a "comfortable" exchange rate would be in the range of 150 to 155 yen per US dollar, adding that he hopes to see stability in the currency market. The yen has recently been trading around the 153 level, after experiencing dramatic swings in recent months. The currency hit multi-decade lows multiple times throughout 2026, prompting intervention by Japanese authorities, which at times strengthened the yen. The current USD/JPY rate stands at 153.55, down 0.41 points (a 0.2663% decline) as of 5:16 AM Eastern Time.

Why currency swings pose a risk

While a weaker yen is advantageous for Japanese enterprises with significant overseas operations, the sharp fluctuations themselves create challenges. Hashimoto noted that the company generates most of its income in dollars, meaning a softer yen inflates the value of its repatriated earnings. Yet, the unpredictability of the currency's movements introduces an element of uncertainty that could ripple through global markets.

Grim outlook for the Strait of Hormuz

When questioned about the situation in the Strait of Hormuz, Hashimoto expressed pessimism regarding a swift recovery of shipping operations in the waterway. "As things stand, it is almost impossible for us to resume normal shipping services in the strait," he commented. Recent figures show that over the past ten days, an average of only ten commodity vessels have transited the strait daily, marking the lowest level since May. Hashimoto hopes that negotiations between Iran and Gulf nations, such as Oman and Qatar, could eventually lead to a favorable resolution, though he conceded that achieving this "will still take some time."