Japan Blue Chips Warn of Possible $1.7 Billion Hit to Profit From Yen Swings

(Nikkei Asia) — Major Japanese companies see exchange rate shifts denting operating profit by 266.7 billion yen ($1.7 billion) in fiscal 2024, a sharp downturn from the boost provided by the yen’s weakness last fiscal year.

This is a sharp turnaround from profit gain due to the foreign exchange rate reaped last fiscal year. Assumptions of a stronger yen are a major factor in the downturn. The companies assume an average exchange rate of about 144 yen to the dollar. Though this is some way off from the current level of around 156, last month’s volatility led many to opt for conservative guesses about the Japanese currency’s future direction.