One possible reason why Japan may prefer a weaker yen is to boost its export competitiveness. When the yen is weaker, it makes Japanese goods cheaper for foreign buyers, which can increase demand for Japanese exports and support economic growth. This is particularly important for Japan, which is a major exporting nation, and a significant portion of its economy is driven by exports.
A weaker yen can also help to stimulate inflation, which has been a persistent problem for Japan in recent years. A weaker currency can make imports more expensive, which can push up the prices of goods and services in Japan and help to boost inflation. Higher inflation can help to support economic growth and reduce the risk of deflation.
However, a weak currency can also have some negative consequences, such as making imports more expensive, which can lead to higher inflation, and can also increase the cost of servicing foreign debt. Additionally, a prolonged period of currency weakness can lead to instability in financial markets and can discourage foreign investment in the country.
Overall, the decision to prefer a weaker currency can be a complex one and may depend on a range of economic and political factors.