Volatile yen risks ‘confused' global markets, chairman of Japanese shipping giant says

• Mitsui O.S.K. Lines, the world's largest tanker owner and operator, earns most revenue in U.S. dollars and benefits from yen weakness, but prefers stability in the 150-155 range
• The yen has experienced sharp swings in recent months, hitting multi-decade lows in 2026 before strengthening temporarily
• Commodity ship traffic through the Strait of Hormuz has dropped to an average of 10 ships per day over the past 10 days, the lowest since May, with recovery unlikely in the near term

Summary

Key Developments:

Mitsui O.S.K. Lines (MOL) Chairman Takeshi Hashimoto warned that volatile yen fluctuations risk creating a "confused situation" in global financial markets, despite the weak currency benefiting his company's bottom line. MOL, the world's largest tanker owner and operator, earns most revenue in U.S. dollars, making it a beneficiary of yen depreciation.

Currency Outlook:

Hashimoto stated that a stable yen range of 150-155 per dollar would be "comfortable" for business operations. The yen currently trades around 153 and has experienced sharp swings in recent months, hitting multi-decade lows in 2026 before strengthening temporarily following intervention.

Shipping Disruptions:

The chairman expressed pessimism about Strait of Hormuz operations, stating it is "almost impossible" to resume normal services through the critical waterway in the near term. Recent data shows only 10 commodity ships per day have transited the strait over the past 10 days—the lowest since May. Hashimoto hopes diplomatic talks between Iran and Persian Gulf nations (Oman, Qatar) will improve conditions, but acknowledged recovery "will take some time."

Market Implications:

The comments highlight dual concerns for Japanese exporters: while currency weakness provides competitive advantages and boosts dollar-denominated revenues, excessive volatility complicates financial planning and risk management. Meanwhile, ongoing Strait of Hormuz disruptions threaten global shipping routes and could impact energy markets and supply chains, given the waterway's strategic importance for oil transit.