Reported 4 months ago
The weakening of the yen against the euro by about 9% this year is expected to provide a significant earnings boost for Japanese exporters with substantial sales in Europe. Companies with a high percentage of sales in Europe are forecasted to benefit from the yen's depreciation, with the lower exchange rate improving their profitability. The yen's decline against major currencies is attributed to the Bank of Japan's low interest rates compared to higher rates elsewhere, making Japanese exports more competitive in international markets. Notably, Makita Corp. and Canon Inc. anticipate improved operating profits with a depreciation of the yen. Additionally, firms like Shionogi & Co. Ltd. are witnessing positive effects on earnings due to the weaker yen, particularly in European sales of anti-AIDS virus medications.
Source: YAHOO