COMPANY VIEW-Impact of rising currency tensions

Oct 14 (BestGrowthStock) – The world’s major economies, shaken by
three years of financial upheaval, are scrambling to cap or
weaken their currencies in a fight to shore up exports —
prompting retaliatory capital curbs and damaging trade rows.
Following are some reactions from executives at leading global
firms on increased tensions over currency policy.

For a PDF on the battle in global FX markets:

http://r.reuters.com/dyw27p
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OSAMU MASUKO, PRESIDENT, MITSUBISHI MOTORS CORP (7211.T: )

“Maybe they (the government) don’t realise just how much
damage (the strong yen) poses on companies. The impact is
massive.

“I guess we have to speed up our efforts to deal with the
strong yen. Shifting production overseas takes time, but for
example we can vastly increase purchases of auto components
from abroad. That can be done in the near term.”

Asked what kind of impact the weaker Korean won would have
on his company’s business: “It’s not just the cheap won.
Governments around the world are looking for an export-led
economic recovery through a weak home currency. In that
respect, it appears to me like the Japanese government is
falling behind.

“But more recently, the situation seems to have shifted
from the yen’s blanket rise to a weak dollar, so we’ll keep
watching the situation closely.”

CHOI JONG-TAE, PRESIDENT, POSCO (005490.KS: )

“We expect to benefit from the strengthening won (KRW=: )
because import costs of raw materials are higher than our
export revenue. The effect of a stronger won materialises after
40 to 50 days, so we expect to benefit from a firmer won in the
first quarter of next year.”

TADASHI YANAI, PRESIDENT, FAST RETAILING (9983.T: )

“For exporters I think it is having a big impact, but since
we sell to retail customers, the nervousness in the market is
not something we fret about. However, a yen this strong is
never beneficial for Japanese companies and industry.”

COMPANY VIEW-Impact of rising currency tensions