Inagaki's questions to TOYOTA MOTOR CORP/ (TM) leadership • Q2 2024
Question
Asked about the foreign exchange rate forecast, specifically if the JPY 141/dollar assumption would be revised upward due to the yen's ongoing depreciation, and inquired about the company's view on the negative impacts of a weak yen and what an optimal exchange rate level would be.
Answer
The company's forecast is based on past results, assuming JPY 140/dollar for the next six months. The executive stated that Toyota prefers stable exchange rates over a weak or strong yen. While a weak yen can boost export income from their strong Japanese production base, it has mixed effects across the entire supply chain. Stability is the most important factor as production sites cannot be shifted easily.