The Japanese Yen is at a 15-year high against the US dollar, and a 9 year high against the Euro. While this makes it a nice time to be a Japanese tourist going to the U.S. or Europe, it's killing Japanese manufacturers like Canon and Sony. For a large industrial powerhouse like Toyota, it's a real crisis. Toyota, which imports 35% of its American-sold vehicles from Japan (Honda only imports 10%), is going to lose more money with currency losses than the massive recall it recently conducted to fix accelerator pedals.
For every yen that the Japanese currency gains in value against its assumed dollar rate of ¥90, Toyota says, it loses ¥30 billion, or $357 million, in operating profit. If the exchange rate stays at the current ¥84 to a dollar, Toyota’s operating profit for its financial year ending next March, which the company forecasts will reach ¥330 billion, could fall by half.
Toyota Feels Exchange-Rate Pinch as Rivals Gain - NYTimes.com
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