-- Japan’s companies are expressing unusual discomfort with the weak yen, just as the country’s government appears to be stepping in to prop up its tumbling currency.Treasuries Rally With Fed Not as Hawkish as Feared: Markets Wrap
The airline industry straddles both worlds. Imported fuel must be paid for in dollars and fewer Japanese are traveling abroad while at the same time inbound travel to Japan is booming. Murata Manufacturing Co., which gets about 90% of its total sales from abroad, said that while the yen’s depreciation has a “positive effect on short-term earnings,” it does not want to see the yen decline too rapidly because it believes that an excessively weak yen could affect the entire supply chain.
Canon Inc. has been recording losses on foreign currency-denominated borrowings from overseas group companies as “non-operating expenses” due to the yen’s depreciation. That sentiment was echoed by the Japan’s richest man, Fast Retailing Co. President Tadashi Yanai. His company, the parent of clothing retailer Uniqlo, benefited from the yen, booking a foreign exchange gain of 16.5 billion yen in the first half of the company’s fiscal year. Still, the overall impact of a weaker currency would hurt the country as a whole.Elon Musk vs.
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