TOKYO -- As financial markets react to heightened geopolitical risk, the yen temporarily climbed to the 108 range against the dollar Thursday, edging closer to territory that would generate exchange losses for corporate Japan.
The Japanese currency traded in the mid-108 range against the greenback on average for the year ended last month, stronger than the year before, and served as a negative factor for earnings. In the current fiscal year, profits will suffer if the yen strengthens beyond its current level, and will improve if it weakens, making the 108-yen mark a make-or-break point for corporate earnings.
