TOKYO, Jan 31 (Reuters) - Honda Motor Co said on Friday it expected favourable currency swings to add 500 million yen ($4.20 million) to operating profit for the business year through March, with a stronger-than-expected euro a major factor.
Japan's second-biggest automaker said it now expected the euro to average 115 yen this business year, compared with the 113 yen it assumed in October.
Its assumption for the dollar was tweaked to 123 yen from 122 yen.
A weaker Japanese currency benefits Honda by inflating the yen value of income earned abroad and making exports more profitable. ($1=118.94 yen)