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Corporate Japan wary of yen's renewed strength

Earnings remain solid, but further appreciation could dampen investor sentiment

Japan's Suzuki Motor produces some cars at home for export, like the Swift subcompact shown here.

TOKYO -- Exchange rates hold less sway over corporate earnings in Japan nowadays, but the yen's recent strength could still take the shine off Japanese companies' bumper earnings.

Although much of corporate Japan forecasts brisk results for the year ending March, a stronger yen would erase some of their profits. The average assumed exchange rate for the January-March quarter stands at 109.50 yen per dollar for companies that close their books at the end of March. At 106.19 yen as of early Saturday, the Japanese currency is now considerably stronger than that assumed rate.

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