The Japanese Yen traded close to a five year low against the Pound and slumped to its lowest level in four years against the Euro recovering some of its losses.
The Yen fell early in the session after data showed that Japan’s trade deficit soared unexpectedly in October as Imports jumped. Exports also rose more than forecast.
According to the Japanese Finance Ministry the nation’s trade gap widened to 1.09 trillion Yen far exceeding the expected rise of 810 billion. The figure was close to twice the previous year’s figure of 556.2 billion. The figure was also the largest deficit recorded for October since 1979 and was the sixteenth consecutive monthly deficit recorded.
The big jump in exports is being blamed on the high cost of imported fuel and energy. The island nation has become reliable on external sources of power in the wake of its nuclear shutdown in the wake of the Fukishima crisis.
Despite the wider deficit there was good news for Japanese exporters. Vehicle exports climbed by 24% over the previous year and the exports of chemicals, electronics and machinery also rose. The USA was Japans biggest export market with shipments rising by 26% from the previous year. Exports to China also improved as tensions eased over disputed islands.
The Yen managed to halt and recoup some of its losses as a decline in Asian and European equities increased demand for the safe haven currency.
The Euro halted its gains and went into retreat as demand for the currency weakened after showed that the Producer Price Index in Germany came in below forecasts.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.0054
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 161.2491
The Euro/Japanese Yen Exchange Rate is currently in the region of: 135.2074
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 83.3537
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 93.9921
(Correct as of 10:00 am GMT)
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