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    The Yen Strengthened &Nbsp, And Several Families Were Unhappy.

    2010/8/25 20:39:00 69

    Exporters' Foreign Exchange Market

    When it comes to Japanese yen's influence on Japanese manufacturers, it is painful and painful.


    This is against Japanese exporters' need to protect and avoid being affected.

    foreign exchange market

    General view of impact.

    In fact, the tolerance of these companies to yen is not as weak as investors think.


    Since the beginning of May, the Japanese yen has appreciated by more than 11% against the US dollar, prompting investors to flee the Japanese stock market.

    On Tuesday, with the US dollar breaking the 85 yen limit against the Japanese yen and the yen rising to a high of nearly nine years against the euro, the Nikkei average fell to a 15 month low.


    The impression of a deal like this is that Japanese manufacturers are trapped.

    crisis

    In fact, according to Daiwa Institute of Research, for the entire industry sector, the annual operating profit will not begin to decline compared with the year ended March until the US dollar reaches 80 yen against the Japanese yen.

    This level is close to the nominal high point of yen's history.


    However, profits will not be obliterated until the yen is stronger than 1 yen to 67 yen.

    One reason is that the processing industry will actually benefit, because the stronger yen will reduce the cost of imported raw materials such as oil and grain.

    It is also because 40% of Japanese export trade is settled in yen.

    For these industries, exchange rate fluctuations will not bring risks to the announced profits.


    However, not all fields are buffered.

    If the US dollar stays at 84 yen against the yen, the profits of auto makers will begin to slide.


    But even in the auto industry, some companies are better off than other companies.

    For example, compared with Toyota Motor, Nissan Motor has a higher proportion of car production in the United States, so the stronger yen has less adverse effects on Motor.

    Nissan also sells an entry-level car from Thailand to Japan so that it can make profits from the yen's strength.


    In addition, Nissan's third largest market is Europe.

    Sale

    Most of the cars are manufactured in Europe.

    Deutsche Bank said that in the first quarter of June, the total loss of the euro was $13 million.


    Japan is facing some long-term adverse factors when companies are operating to avoid damage in the yen.

    Capital outflows and high paid jobs will be a problem when manufacturers shift more production overseas.

    Moreover, the strengthening of the yen means that Japan is importing deflation, after which Japan has suffered 10 years of price declines.


    However, a problem that investors are very concerned about - the impact on earnings - may not happen soon.

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