Japan’s (BOJ) central bank’s (BOJ) stance to remain dovish is increasingly hurting the yen to slump to a 20 -year low, causing the cost of imported food and fuel to rise thus impacting households and businesses.
Even so, there are also entities that benefit from the weakness of the currency, particularly companies with overseas businesses and lower dollar debt.
This is because many firms ’forecasts for the current fiscal year are based on the assumption that the currency will be ¥ 15 to ¥ 20 stronger against the USD than the current level at ¥ 134.
For Takeda Pharmaceutical Co., Japan’s largest drugmaker, the weaker yen helped as 80% of its sales were overseas. Takeda has made his forecast based on the value of the yen at ¥ 119 against the dollar.
Nintendo Co., a Kyoto -based video game maker, released its earnings forecast for the year last month assuming the yen is at ¥ 115 by March 2023, the end of the fiscal year.
President Shuntaro Furakwa told investors at the time that a one -yen shift from that rate would result in an increase of ¥ 6.3 billion ($ 47 million) in the U.S. alone if sales did not change.
Meanwhile, the president of camera maker Canon, Fujio Mitarai said the depreciation of the yen could be a huge benefit to the company.
He made the statement after Canon released a projection based on an expected rate of ¥ 120 against the dollar.
