When other trading partners are cheating. This will effect American jobs, American tax base.
Ford’s (NYSE: F) CEO Alan Mulally has labeled Japan a “currency manipulator.” Since December, the value of the yen has dropped precipitously against the US dollar, largely due to the policies of Japan’s newly elected Prime Minister Shinzo Abe.
Ford, an American manufacturer that competes largely against Japanese companies, is uniquely positioned to suffer from a cheap yen, as is its major American rival General Motors (NYSE: GM).
In March, when the dollar/yen was near 90, analysts at Morgan Stanley estimated that Toyota (NYSE: TM) was getting a benefit of some $1,500 per car. While that might not seem like a lot, it could certainly add up over time. Particularly if the yen continues to weaken.