USD/JPY around 103.50 after Japan’s Current-Account Deficit

The yen held losses against all of its major peers after data showed Japan’s current-account deficit widened to the most on record in November.

Ministry of Finance data showed Japan in November bought a net 1.76 trillion yen ($17 billion) of U.S. Treasuries, which almost have the highest yield premium over Japanese debt in more than two years. The yen retreated from a three-week high against the dollar after Suntory Holdings Ltd., the closely held Japanese whiskey and beer maker, agreed to buy Deerfield, Illinois-based Beam Inc. for $16 billion including debt.

“The yen will weaken on its own,” said Daisuke Karakama, a market economist in Tokyo at Mizuho Bank Ltd., a unit of Japan’s third-biggest financial group by market value. The current-account deficit “is one of the reasons why yen won’t strengthen. The widening yield differential is pushing dollar-yen higher.”


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