JAPAN: JAMA wants weaker yen to bolster US profits - report
The Japan Automobile Manufacturers Association wants its home currency to be weaker than 120 yen to the dollar, the motor industry group's chairman Yoshihide Munekuni told a press conference, according to Bloomberg News.
"It's important for the yen to be weaker than 120 to the dollar for JAMA group companies," Munekuni reportedly said. "The current 115 yen to the dollar range is not a good position."
Bloomberg News noted that Japanese car makers increasingly rely on US sales as Japan's market stagnates, with unemployment near record highs and employee bonuses falling. Car makers such as Honda rely on North America for as much as 90% of their operating profit and a stronger Japanese currency reduces the repatriated value of overseas earnings for the country's automakers.
Bloomberg News said the yen has traded at an average 119 yen per dollar since January.