- MarketPulse - https://www.marketpulse.com -

Weak Yen Appears to be Paying Off

Japan’s exports jumped in July from a year earlier at the fastest pace almost three years in a sign that a recovery in overseas demand and the often-touted benefits of a weak yen are finally starting to take hold.

However, the trade balance was in deficit for the 13th consecutive month in July, as imports surged by the most in three years due to the weak yen and rising oil prices, that have made Japan’s energy imports ever more expensive.

Almost all of Japan’s nuclear reactors have remained idle since the Fukushima disaster in March 2011, putting extra pressure on the energy import bill.

The 12.2 percent increase in exports in the year to July was less than the median estimate for a 13.1 percent annual increase, but economists took the data positively as exports to the United States, China and Europe all accelerated.

CNBC [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

marketpulsefxstaff

Latest posts by marketpulsefxstaff (see all [4])