Japanese factory owners worried about rising currency

Calcutta News.Net
Friday 27th August, 2010

Japanese factories may relocate overseas if the yen stays at its current high of around 85 to the dollar.

An official survey in Japan has shown over 60 percent of firms are considering turning over their production to affiliates if the foreign exchange rate hollows out domestic industries.

The survey, carried out from August 11 to 24, showed that business leaders felt Japanese exports had become less competitive overseas.

The yen has recently traded near a 15-year-high against the dollar, and a nine-year high against the euro, putting pressure on businesses and subcontractors in Japan to slash costs.

The survey also found firms were worrying about losing contracts to overseas rivals.

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