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.
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