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 yen reduces the value of repatriated overseas revenue and weigh

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 yen reduces the value of repatriated overseas revenue and weighs on firms with large US/EU sales exposure.