Export-dependent Japanese companies expressed alarm Thursday as their tepid recovery in earnings driven by drastic cost-cutting efforts were threatened by the yen's steep rise to a 14-year high against the dollar.
Loss-making electronics firms and automakers have deeply slashed jobs and production levels to emerge out of the red, but company officials warn restructuring steps alone will not be enough to keep them competitive if the yen continues to appreciate.
The dollar fell to near ¥86.30, the lowest since July 1995, at one point on Thursday afternoon in Tokyo due mainly to persistent speculation about the low U.S. interest rate policy.