(As written for My Paper on 26 July 2011. Click here to enlarge)
Japanese exporters are starting to feel the heat again.
With the Yen near its all-time highs, big names like Toyota, Sony and Nissan are frustrated that corporate profits are hurt due to the Yen strength.
As the world’s 4th largest exporter, Japan thrives on a weak Yen to aid export sales.
Early this week, the USD/JPY fell to 78.13, the lowest in 4 months.
According to the Bank of Japan’s Tankan Survey, that rate is now more than 4 Yen below the rate on which big manufacturers have based their earnings forecasts for the current fiscal year. Read more…