Toyota applauds end of yen dominance against the dollar

Article by Anita Panait, on May 13, 2013

The Japanese yen continued its onslaught against the dollar as it breached a value of JPY100 against the US currency Thursday, May 9, 2013. The last time the yen had traded at JPY100 against the dollar was four years ago. Historically, a trading value of 100 means that the yen is still strong.

The highest value of the yen was recorded in 2011 when it hit JPY75.35 against the dollar, while its lowest in the decade was in 2007 when it reached JPY124.14.

However, the yen breaching JPY100 was considered a milestone, since it means that Japanese carmakers may no longer be constrained by the high value of yen, which had been affecting their profits in the last few years. It also means a recovery for the Japanese economy, as it urged investors to pour in their money in the country, driving the Nikkei 225 Stock Average to its highest level since 2008.

The weakening yen has increased the market value of Toyota Motor Corp. by almost $100 billion. It began depreciating in mid-November 2012. The weakening yen also tripled the market value of Mazda Motor Corp. Meanwhile, Japanese carmakers are getting big boosts from the weakening. There is no reason for them to slack off, as they now face tougher competition than five years ago.

Carmakers from the United States (General Motors, Ford and Chrysler), Germany (Volkswagen, BMW and Daimler) and South Korea (Hyundai and Kia) are posing a great challenge to their Japanese counterparts. They are catching up quickly against Japanese carmakers, which used to enjoy a great advantage over them in several areas, according to Yuuki Sakurai, president of Fukoku Capital Management.

Topics: toyota

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries