Japanese Yen Weaker Against Major Counterparts

Japanese yen is weaker today, thanks in large part to the continued efforts to maintain stimulus measures in Japan. The latest trade deficit data doesn’t appear to be changing anything at this point, either.

In November, Japan saw a year over year rise of 1.29 trillion in its trade deficit. This is a new record, as well as the 17th straight month of a deficit for Japan. The big difference is due mostly to energy. While Japan continues to export, the reality is that the Fukushima crisis in 2011 has forced Japan to shut down its nuclear reactors, and that means that it is importing its energy.

The yen remains weak against its major counterparts, and is likely to remain so as long as the economic plan put into place at the behest of Prime Minister Shinzo Abe — called “Abenomics” — remains in place. The whole point of that plan is to spur inflation and keep the yen weak.

For now, that plan seems to be working. GDP is rising and profits at major exports are improving. There are hopes that the policy could end the decades long trend of deflation.

At 14:05 GMT USD/JPY is up to 103.0530. EUR/JPY is up to 14.6875 from the open at 141.3005. GBP/JPY is up to 168.8320 from the open at 166.9350.

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