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Forex

Japan Inc. softening its outlook for the yen

Euro's strength leaves room for better-than-forecast results

The euro is trading at much stronger levels against the yen than expected.

TOKYO -- Japanese companies are adjusting their assumed exchange rates to reflect the yen's weakening trend, brightening earnings prospects for export-heavy corporations.

The modified average assumed rate for the current fiscal year stands at about 110 yen per dollar, roughly in line with the market, and 118 yen per euro, much stronger than the current trading rate of around 130 yen. The previous averages were 109 yen to the dollar and 117 yen to the euro. Many of the companies that revised their outlook had initially made conservative forecasts.

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