effects of the rise of the yen

[noimmunity]

The yen has advanced 24% versus the US dollar this year, 32% against the euro and 60% against the pound sterling. It may reach 80 per dollar in one or two months, forecast Umemoto Toru, chief currency analyst in Tokyo at Barclays Capital.

It's inevitable that these gains, which are expected to continue, will affect the price of new photographic equipment outside of Japan. For the small rangefinder market, I wonder if it could translate into pressure on Cosina and Cosina/Zeiss to outsource production overseas as it apparently is for much larger export manufacturers ?

 

[jonmanjiro]

Considering that the Japanese are a major holder of US debt, they're gonna be really pi55ed to see the USD go to 80 yen 😱

The carry trade is pretty much dead in the water. Especially now that reserve banks around the world are slashing interest rates to try and kick start lending.

Japanese companies are starting to lay off casual and part time workers in large numbers, and there's talk of lay offs coming for regular full time employees. Its starting to look like employment for life may soon be no more.

Any guess as what will happen to the yen if the Japanese economy starts to tank badly?

As to the question the OP posed, yes there would have to be pressure on Cosina to cut costs and remain profitable. Not sure who they could outsource to overseas though.