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zimbawawa on 26 September 2012
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Viper1 said:
wfz said:
kowenicki said:
Viper1 said:
kowenicki said:
Seems a little harsh to me given that the currencies have moved a little bit back in the favour of Japanese exporters like Sony recently.

The Yen is expect to drop from 77 to 70 against the Dollar over the next year.


Yes, the strengthening of the Euro has been offset by a weakening of the dollar v Yen recently.  If it hit those levels you talk about then Japanese exporters would suffer massively.


Wouldn't a weaker Yen help exporting? I thought one of Nintendo and Sony's biggest issues was that the Yen was too strong and they were making less money overseas due to that.

Yes.  A weaker Yen against the Dollar and Euro would help overseas sales but dropping from 77 to 70 is a strengthening, not a weakening.   Back in 2006, the ratio was 110 Yen to 1 USD.   Now it's 77 Yen to 1 USD and it's epected to be around 70 Yen to 1 USD next year.


Looks like printing money is working for Japan.