Yen soaring temporarily 101 yen level Tokyo foreign exchange market March 9 18:39
For the first time in three years and four months, the yen appreciated against the dollar in the Tokyo foreign exchange market on the 9th for the first time in about three years and four months. Concerns that the spread of the new coronavirus could have a serious impact on the global economy led to a rapid spread of buying yen, a relatively safe asset.
In the yen exchange rate, the yen began to buy in the morning, and the price of the yen rose by more than 4 yen from the end of last week and the yen appreciated against the dollar to mid-101 yen before noon.
At 5:00 pm, the yen was priced at ¥ 3.57 compared to the previous weekend, and the yen depreciated against the dollar at ¥ 102.22 to ¥ 25.
The value of the euro against the euro was 1.91 yen compared to the end of last weekend, and the yen depreciated against the euro from 116.94 yen to 98 yen.
The euro was $ 1.1439 to $ 41 against the dollar.
The yen's appreciation and the depreciation of the dollar have accelerated due to growing concerns that the spread of the new coronavirus could seriously affect the economies of countries, including the United States, which has led the world economy.
Market officials said, "The collapse of talks in oil-producing countries and a sharp drop in crude oil prices have triggered a sharp increase in investor caution and a move toward buying the yen. The focus will be on whether stock prices and oil prices will settle in the future European and American markets. "
Concerns about worsening business performance of automobiles and electronics
It is feared that the sharp appreciation of the yen in the foreign exchange market will have a significant impact on the performance of export-related companies such as automobiles and electronics.
Major manufacturers of automobiles and electric appliances assume that the exchange rate for the year to this month will be from 107 yen to 109 yen per dollar.
Of these, Toyota estimates the exchange rate to be 108 yen per dollar, and it is expected that annual operating income will decrease 40 billion yen if the yen increases and the yen strengthens.
Other automakers will lose 12 billion yen in annual operating profit, 11 billion yen in Nissan, and 10 billion yen in SUBARU if the yen rises by 1 yen or more than expected exchange rates. It is a calculation.
On the other hand, if the yen exceeds the assumed rate by an electric appliance manufacturer, the annual operating income will decrease by 4.4 billion yen for Canon, 2.4 billion yen for Panasonic, and 1.8 billion yen for Mitsubishi Electric.
Production and sales of automobiles and electronics manufacturers are declining, especially in China, due to the spread of the new coronavirus, and if the yen continues to appreciate, the impact on business performance is inevitable. .
Keidanren Chairman Nakanishi "It's a very serious situation"
Regarding the ongoing financial market turmoil, including a sharp appreciation of the yen and falling stock prices due to the spread of the new coronavirus, Keidanren Chairman Nakanishi said at a press conference on September 9 that "it is a very serious situation." He stressed that the public and private sectors should work together to prevent transmission.
Mr. Nakanishi commented that the turmoil in the financial markets and the sharp rise in the value of the yen and stock prices were "a very serious situation. We take seriously that today's further progress has been made. Yes. "
Mr. Nakanishi said, “Surrounded by the fact that multifaceted effects are actually occurring on transportation and tourism, which are seriously affected, and on the financing of small and medium-sized enterprises. The public and private sectors should work together and put all their efforts into countermeasures to curb them. "He emphasized the idea that public and private sectors should work together to prevent the spread of infection.
The reason for the sharp rise in the yen market
Aozora Bank's General Affairs Department Director Akira Moraga said, "The spread of infection has spread here, including the announcement of a state of emergency in New York, USA," regarding the rapid appreciation of the yen against the dollar in the Tokyo foreign exchange market on the 9th. Concerns over its impact on the real economy of the U.S. increased at once and the dollar was sold. "
He added, "Last week, the Federal Reserve Board decided to urgently cut interest rates, lowering long-term interest rates in the United States and weakening the attractiveness of the dollar, which led to dollar-yen selling and yen buying. Has been a source of dollar selling, as the plunge in US has been a negative factor in corporate earnings in the United States. "
Regarding future prospects, Mr. Moga said, "Financial policies such as interest rate cuts are fundamentally difficult to solve, and fiscal policies such as support to companies will be important. What is the impact on the real economy of the United States? Uncertainty is likely to continue until the economic data released later this month confirms the need for high vigilance. "