Bloomberg News

Marubeni Sees End of Yen Rally After Central Bank Intervention

October 31, 2011

Oct. 31 (Bloomberg) -- Marubeni Corp., Japan’s biggest grain-trading company, expects the yen’s appreciation to end following the central bank’s intervention in the market, Chief Financial Officer Shigemasa Sonobe said.

“The intervention has brought results,” Sonobe told reporters in Tokyo today after announcing first-half profit that beat analyst estimates. The currency is likely to trade between 75 yen and 80 yen to the U.S. dollar for the “foreseeable future,” Sonobe said.

The Bank of Japan today intervened in the foreign-exchange market to halt the yen’s rise against the dollar to a postwar high of 75.35. The yen dropped to 79 against the dollar, the lowest since Aug. 5, after the intervention. The strengthening currency has eroded profits of Japan’s export-oriented industries including carmakers Toyota Motor Corp. and Honda Motor Co.

First-half profit jumped 50 percent to 103 billion yen ($1.3 billion), Marubeni said today in a statement. The mean of four analyst estimates compiled by Bloomberg was 90.7 billion yen. Revenue grew 16 percent to 5.15 trillion yen. The dividend forecast was raised to 20 yen a share from 15 yen, the company said.

Separately, Marubeni forecast copper to average $7,750 a metric ton in the last three months of this year and WTI futures crude oil to be at $80 a barrel, Sonobe said.

--Editors: Indranil Ghosh, John Chacko

To contact the reporters on this story: Yuriy Humber in Tokyo at; Ichiro Suzuki in Tokyo at

To contact the editor responsible for this story: Rebecca Keenan at

Hollywood Goes YouTube

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

blog comments powered by Disqus