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The Japan Times
Japan carmakers expect yen to keep trading near post-intervention levels
Japanese car manufacturers, including Toyota and Nissan, have aligned their profit expectations with the yen's recent trading range of ¥150 to ¥160 against the U.S. dollar. This forecast comes in light of the U.S. and Japan's coordinated intervention in the currency markets, aimed at stabilizing the yen and mitigating inflation risks. While a stronger yen might help control inflation, it poses risks to carmakers' profits, primarily from increased earnings when sales from abroad are converted back into yen.
MonitorConfidence: MediumShort term horizon
Published 7 Aug 2026, 02:45 UTC1 min read
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Summary
TL;DR
- Carmakers expect yen to remain stable at around ¥150-¥160 against the US dollar.
- Recent intervention by U.S. and Japan in currency markets to stabilize yen.
- Current yen trading around ¥157.7.
- Stronger yen could lower overseas earnings for Japanese automakers.
- Inflation concerns prompt government action to prevent further yen depreciation.
Interesting facts
- This joint intervention is the first between the U.S. and Japan since 2011.
- A stable yen is crucial for Japan's carmakers' profit margins from exports.
- Currency fluctuations greatly affect import prices and inflation in Japan.