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Yen's drop wipes out currency hedges for Japan firms
Published Fri, Jun 12, 2015 · 09:50 PM
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Tokyo
THE yen's precipitous drop to a 13-year low has made Japan Inc forgo hedging currency risk.
The currency's plunge below 125 against the US dollar this month wiped out many existing hedges and also made replacing those contracts prohibitively expensive for Japanese companies buying the US currency to pay for their imported goods, according to FPG Securities Co and Mizuho Bank Ltd.
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