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Corporate Japan girds for stronger yen in fiscal 2016

TOKYO -- More than half of Japan's major companies are assuming an exchange rate of 110 yen to the dollar for the year ending March 2017, opening up the possibility of earnings declining further should the home currency continue strengthening at its recent clip.

Most of the 360 companies surveyed by The Nikkei anticipate a dollar exchange rate well below the fiscal 2015 average of around 120 yen this fiscal year. A majority, or 52%, have assumed 110 yen in their fiscal 2016 earnings forecasts. The stronger yen is seen hurting earnings at automakers, electronics manufacturers and other export businesses by cutting dollar revenue earned overseas during currency conversion.

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