Stronger yen hits Nintendo shares

Nintendo's share price fell by JPY 2700 (EUR 17.3) overnight as the yen strengthened slightly against the dollar and euro.

Although the share price has risen by 65 per cent this year off the back of continuing strong sales of the Wii and DS, the currency exchange rate is having an effect because 68 per cent of Nintendo's sales come from overseas.

According to a report on Bloomberg — citing a JPMorgan analyst — for every JPY 1 gain against the dollar, Nintendo's stock could decline by JPY 400 — 600.

Similarly, for every JPY 1 gain against the euro, that share price could fall by JPY 200 — 400.

The yen rose slightly against both currencies in the past 24 hours, bringing the price down to JPY 51,000.

Nintendo recently revised its annual net income forecast upwards by 40 per cent from its April prediction to JPY 245 billion (EUR 1.57 billion).