Yen’s Surge Threatens to Wipe Out Japan’s Recovery From Quake

The yen’s biggest monthly advance since 2008 is threatening profits of exporters from Toyota Motor Corp. to Nissan Motor Co., endangering the nation’s rebound from March’s record earthquake.

The currency traded at 77.04 per dollar late yesterday in Tokyo, 7 percent higher than the 82.59 yen-dollar average that exporters used for profit forecasts in a Bank of Japan survey. Toyota sees a yen stronger than 80 as a brake on growth.

Japan’s “Mr. Yen,” former top currency official Eisuke Sakakibara, forecasts the currency will climb to as high as 75 after already reaching a post World War II record of 76.25 in March. With reconstruction efforts bogged down in political wrangling, the yen’s advance may add pressure on Prime Minister Naoto Kan to quit and push the Bank of Japan to inject more money into the economy.

Read Full Article from Bloomberg

- Posted: 2011-08-01 11:17:53

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