Weak Yen Rises Import Costs Japan Posts Another Deficit

The deficit for the month rose to 932bn yen ($9.5bn; £5.8bn), up 64% from a year ago, as imports rose 16.5%.

A series of aggressive measures aimed at reviving Japan’s economy has resulted in the yen falling nearly 25% against the US dollar since November.

While that has helped Japan’s exports by making them cheaper, it has also made imports more expensive.

However, the growth in exports has not been sufficient enough to offset the higher import bill.

Data released by the Ministry of Finance showed that exports rose 11.5% in September, from a year earlier.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza