The latest news out of Japan shows a smaller than expected trade deficit for the month of January, thanks to more exports and lower oil and gas prices. However, the yen is still lower against its major counterparts, trading on concerns about economic recovery.
Yen is lower against its major counterparts today as further concerns about the Japanese economy, and what the Bank of Japan and other policymakers will decide to do to spur growth, weigh on the currency. Things were lightened a little bit by the latest report of a shrinking Japanese trade deficit in January, but it isn’t enough to help boost the yen today.
Japan’s trade deficit was smaller than expected in January, and smaller as compared to a year ago. Stronger exports have helped, as have lower oil and gas prices. Japan has been struggling with trade deficits since a 2011 tsunami wiped out a major nuclear power plant. Now, Japan has to have its fuel imported. Lower prices in recent months, coupled with stronger export activity, is helping reduce Japan’s trade deficit.
However, the yen is still lower as economic data shows lack of growth, and Forex traders speculate on possible stimulus.
At 11:33 GMT USD/JPY is up to 118.9110 from the open at 118.6360. EUR/JPY is up to 135.5380 from the open at 135.2360. GBP/JPY is up to 183.6600 form the open at 183.2250.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.
