TOKYO Nov 6 Honda Motor Co (7267.T) Chief
Executive Takeo Fukui said on Thursday Japanese authorities
should intervene in the currency market to prevent wild
fluctuations in the yen.
"We can't do business when foreign exchange rates are
swinging like this," Fukui told reporters at the launch of the
remodelled Life minivehicle in Tokyo.
"Of course (the government) should intervene," Fukui said,
adding that concerted intervention was also an option.
The dollar fell to a 13-year low near 90.90 yen JPY= in
late October, as worries of a global recession triggered the
unwinding of carry trades, which use low-yielding currencies to
buy higher-yielding currencies and assets.
The dollar stood at around 97.80 yen on Thursday.
The stronger yen, which erodes the value of earnings made
overseas, has prompted most Japanese automakers to lower their
profit forecasts for the business year ending in March.
Honda, Japan's No.2 automaker, cut its annual operating
profit forecast to 550 billion yen from 630 billion yen for this
year, but that is based on average dollar and euro rates of 100
yen and 135 yen for the second half -- more favourable than
current levels. [ID:nT120116]
(Reporting by Chang-Ran Kim; editing by Sophie Hardach)