TOKYO Dec 20 The yen remains very strong
against the dollar and the euro even after the Japanese
currency's recent weakening, the head of Japan's auto lobby said
The yen has dropped on expectations that Japan's
next prime minister, Shinzo Abe, will pressure the Bank of Japan
to adopt aggressive monetary easing.
"This is merely a correction of yen strength. Even now, the
yen is extremely strong," Akio Toyoda, who is also president of
Toyota Motor Corp, told reporters.
Japan's auto exporters are sensitive to fluctuations in the
yen, which rose to a record high of 75.311 yen to the dollar in
October 2011. A stronger yen reduces what car makers and their
suppliers earn overseas and hurts their ability to match
competitors such as South Korea's Hyundai Motors on price.