The yen climbed to a more-than-six-month high, creating downside risk for
Japanese automakers after many forecasts assumed a weaker currency. Toyota
assumes USD/JPY 160 and says a 1-yen appreciation cuts annual operating profit
by about JPY50 bln (~$326m). The current yen is stronger than the exchange-rate
assumptions of all Japanese automakers except Nissan, which models USD/JPY 150
through the fiscal year to March 2027. A stronger year reduces the value of
repatriated overseas revenue and weighs on firms with large US/EU sales
exposure.
