Renault stock took a hit on Tuesday as the Japanese yen experienced significant fluctuations, leading to concerns about how this might affect the French car company’s profits. This concern arises because Renault holds a majority stake in Japan’s Nissan.
At one point, the Japanese yen briefly dropped below the important 150 yen per dollar mark, only to rebound and strengthen to around 147.3 yen per dollar.
As a result of these currency swings, Renault’s shares in Paris ended the day down 5.9%, having initially fallen 3.1% before the yen’s rollercoaster ride.
“In the second quarter of 2023, Nissan added 271 million euros (equivalent to $283.2 million) to Renault’s earnings.”
(Note: I added the equivalent amount in parentheses for clarity.)
