USD/JPY at 98 after Bigger Than Estimated Trade Deficit

The yen fell against all of its 16 major peers after Japan posted a bigger-than-estimated trade deficit and gains in stocks reduced demand for haven assets.

Japan’s currency weakened as Bank of Japan Governor Haruhiko Kuroda pledged to continue easing to achieve stable inflation. The dollar traded near the weakest since February against major counterparts before data forecast to show U.S. unemployment held above the threshold for the Federal Reserve to start tapering stimulus. The 17-nation euro was 0.2 percent from the strongest in more than eight months ahead of a report this week which may show the region’s consumer confidence was the highest since July 2011.

“The yen is probably leading the way as far as losses versus the dollar are concerned,” said Sacha Tihanyi, a senior currency strategist at Scotiabank in Hong Kong. “Equities are doing a bit better. We haven’t seen a turn in the trade balance, which is a little bit concerning.”


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