The rising yen against the US dollar is likely to hit Toyota’s earnings, the automaker’s head has said.
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“The yen has strengthened too much and will have a big impact on us,” Toyota president Katsuaki Watanabe told Reuters in Tokyo on Friday.
After his comments, the yen extended gains to trade just below 102 to the dollar, its highest in more than three years, the report noted.
The dollar has been weakening on concerns that the credit crisis would push the US economy into recession, Reuters said.
Watanabe said it might be difficult to offset the currency impact with increases in vehicle sales and costs cuts as the yen’s rise had been so rapid.
For every one yen that the Japanese currency appreciates, Toyota says its operating profit declines by about JPY35bn ($US340m), the report said.
