ID :
341799
Fri, 09/19/2014 - 07:23
Auther :

Concerns about Yen's Fall Growing among Japan Firms

Tokyo, Sept. 18 (Jiji Press)--Concerns about negative effects of the yen's depreciation are growing among Japanese firms, as the yen hit a fresh six-year low just below 109 yen on Thursday. "The yen's current level is beneficial for Japan's economy as a whole," Sadayuki Sakakibara, chairman of the Japan Business Federation, or Keidanren, said. But some companies, particularly food businesses heavily relying on exports for raw materials, have begun to feel the pain of the weaker yen. Many food makers use financial contracts to hedge against rapid foreign exchange rate fluctuations. Therefore, "The weaker yen is unlikely to have immediate effects," an official at soy sauce maker Kikkoman Corp. <2801> said. Still, an official at edible oil producer Nisshin Oillio Group Ltd. <2602> said, "We could be forced to revise prices if the yen continues to weaken." Some personal computer makers that procure components mainly from overseas are also eyeing possible price hikes. Worries about the weaker yen are emerging even in the auto industry, which has benefitted from the yen's weakening under the administration of Japanese Prime Minister Shinzo Abe, who took office in December 2012. "We are not necessarily happy with the yen's continued depreciation," said Fumihiko Ike, chairman of the Japan Automobile Manufacturers Association and chairman of Honda Motor Co. <7267>. Ike pointed out that manufacturers are leery of a rise in electricity costs on the yen's further drops. The yen's fall is undesirable at a time when Japan's fuel imports are elevated following nuclear power plant shutdowns, said Akio Mimura, chairman of the Japan Chamber of Commerce and Industry and a member of the government's Industrial Competitiveness Council. END

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