Yen appreciation may put pressure on Maruti Suzuki earnings, stock price

The Japanese currency is up 5.2% against $ in 1 month

The recent appreciation in Japanese yen against major currencies is expected to put additional pressure on Maruti Suzuki earnings and its stock price. Yen is up 5.2 per cent against the dollar in the past one month, and analysts expect it to appreciate further as the Bank of Japan normalises its monetary policy, pushing up interest rates in the country. This is likely to increase capital inflows into the country, exerting upward pressure on the currency.
 
An expensive yen, in turn, will push up Maruti Suzuki’s import bill in Indian rupee, putting pressure on its margins. Historically, there is