Japan's top labour union group urges government to stabilise forex

TOKYO, Jan 21 (Reuters) - ⁠The chief ⁠of ‍Japan's largest trade union umbrella group Rengo on Wednesday pressed the government ‍to steer economic policy toward stabilising foreign exchange ​rates, saying that the weak yen is accelerating inflation ​through higher import costs.

The yen has sank against major currencies due to concern over Japanese Prime Minister Sanae Takaichi's ​dovish fiscal policy. It hit an 18-month low of 159.45 per U.S. dollar this ​month, its weakest since Japan last intervened in support the ‌currency in July 2024.

"We believe that the yen's current depreciation is fuelling inflation through (higher) ​import costs," Tomoko Yoshino, ⁠the chief of Rengo, said in a group interview.

"We'd like to call ‌on the government to conduct macroeconomic management that stabilises prices and exchange rates," she said, noting that ‌prices continue to run above the 2% inflation target set ‌by the government and the Bank of Japan.

Rengo, a 7 million member-strong union umbrella group, has set a ‍target of 5% or more for the 2026 spring pay talks, which ⁠typically conclude in mid-March. Last year, Rengo member unions secured an average wage hike of 5.25%, the biggest in 34 years.

(Reporting by Makiko Yamazaki; Editing by Christopher Cushing)

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