Majority of Japanese Firms Says Weak Yen Hurts Profits: Survey.

INTEREST rates; BUSINESS enterprises; JAPANESE yen; COST of living; FOREIGN exchange market

According to a recent survey by Teikoku Databank, a majority of Japanese companies view the recent weakness of the yen as detrimental to their businesses. About 64% of the surveyed firms reported that the depreciation of the yen has eroded their profits, while only 7.7% saw a positive impact. Many companies cited difficulties in passing on rising raw materials costs to customers through price increases. The report also revealed that around half of the surveyed companies believe a yen trading around 110-120 to the dollar would be appropriate, while the yen was trading around 155.80 to the dollar at the time of the report. The weak yen has had mixed effects, benefiting exporters but negatively impacting domestic activity and household spending. [Extracted from the article]

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