Three Quarters of Japanese Companies Prefer Stronger Yen

The yen’s rapid descent to six-year lows against the dollar is starting to push beyond comfort zones for three quarters of Japanese firms, a Reuters poll showed, highlighting the potential for profits to be squeezed as import costs climb.

Japan struggled with a strong currency for much of the past decade, only gaining sustained relief from late 2012 as Prime Minister Shinzo Abe came to power and embarked on bold monetary stimulus.

But this past month, the yen has tumbled about 6 percent to trade around 109 yen against the greenback, pressured by growing expectations that the Federal Reserve will lift interest rates sooner than forecast and speculation that the Bank of Japan may have to ease further.

Reuters

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