TOKYO : More than three-quarters of Japanese firms say the yen has declined to point of being detrimental to their business, a Reuters poll found, with almost half of companies expecting a hit to earnings.
The currency fell to its lowest against the dollar in about 20 years on Wednesday, slumping past 126 yen. It has pared some losses and was trading at 125.6 yen on Thursday. This month's survey was conducted between March 30 and April 8, when the yen moved between 122 and 124 to the dollar. It polled about 500 large and midsize Japanese non-financial firms, of which around half responded.Non-manufacturers, which tend to be more focused on the domestic economy, were more sensitive to the weak yen than manufacturers, but only by a thin margin, the survey showed.
Overall, 48per cent of firms expect the currency's weakness to hit earnings, with 36per cent saying it would hurt profits"somewhat" and 12per cent saying the impact would be"considerable".Many food processors and retailers expect a hit to earnings, as do many in fibre, paper and pulp manufacturing, steelmaking as well as automaking and auto parts.
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