Japan Trade Deficit Widens to 406.9 Billion Yen as Yen Hits 40-Year Dollar Low and Record Trade-Weighted Rate
Japan’s trade deficit widened to 406.9 billion yen, more than three times the 120 billion yen consensus forecast, as the yen fell past 163 per dollar to a 40-year low against the U.S. dollar. The Bank of Japan’s nominal effective exchange rate index also hit a record low, tracking the currency’s decline across a broad trade-weighted basket of roughly 60 currencies.
The broad trade-weighted decline raises import costs from a wider range of trading partners, intensifying imported inflation pressures and raising expectations for faster Bank of Japan policy tightening. The central bank recently hiked rates to a 31-year high of 1%, while imports surged 25.4%, compounding the economic strain from a wide U.S. interest rate gap and elevated oil prices.
From the sources (25 posts)
@firstsquawkYEN SLIDES BACK TO WEAKEST SINCE 1986, TOUCHES 162.89 VS USD
@hedgeyeBREAKING: Yen hits weakest level versus U.S. Dollar since 1986
@bulltheoryio🚨 JAPAN HAS A SERIOUS PROBLEM USD/JPY is back at 162.7, a very dangerous level. On June 16, the BOJ raised rates to 1%, the highest since 1995. Normally that strengthens a currency but the yen barely moved. Before that, in April and May
@ftInvestors fear Japanese bond bets risk becoming new ‘widow-maker trade’
@businessThe yen weakened past 163 per dollar for the first time since 1986, raising the risk of intervention by authorities to prop up the currency
@firstsquawkJapan announces a 300 billion yen sale of 40-year government bonds.
@firstsquawkJapanese 30-year bond yields edge higher by 1.5 basis points to 3.9%.
@firstsquawk5-YEAR JGB YIELD CLIMBS 2.0 BASIS POINTS TO 1.960%.
@firstsquawkThe 40-year JGB yield increases to 3.895%, up 0.5 basis points.
@barchartJapan's long-term borrowing costs are now at the highest levels this century 🚨 🚨
@firstsquawkThe 10-year JGB yield increases to 2.750%, up 3.0 basis points.
@firstsquawkJapan's 40-year JGB yield climbs 2 basis points to 3.910%.
@firstsquawkJapan's 2-year JGB yield hits a nearly 30-year high of 1.49%, up 5 basis points, the highest since May 1995.
@firstsquawkJapan's 2-year government bond yield climbs 6 bps to 1.50%, reaching its highest level since May 1995
@firstsquawk5-year Japanese government bond yield advances 4 basis points to 2.00%.
@marketnews_feedJAPAN'S 2-YEAR JGB YIELD HITS A NEARLY 30-YEAR HIGH OF 1.49%, UP 5 BASIS POINTS, THE HIGHEST SINCE MAY 1995. ...
@barchartBREAKING 🚨: Japan Japan's 2-Year Bond Yield soars to 1.5%, the highest level in more than 30 years 🤯 👀
@firstsquawkJapan Finance Minister Katayama says he will not comment on specific forex levels.
@financialjuiceJapan Finance Minister Katayama: prepared to take decisive steps on forex if necessary
@firstsquawkJapan's Finance Minister Katayama reiterates readiness to take decisive measures in the forex market as needed.
@goldtelegraph_Japan’s finance minister is warning that authorities stood ready to take “appropriate and bold action” to defend the yen. Well...
@businessWhile the yen’s plunge to a four-decade low against the dollar has dominated headlines, a broader gauge of the currency’s strength is sending an equally worrying signal for Japan
@reutersUS-Iran tensions underpin dollar as yen nears 40-year low
@globalmktobserv⚠️The Japanese Yen weakness is spreading FAR BEYOND the US Dollar: The Bank of Japan's nominal effective exchange rate index has fallen to the lowest level on record. This tracks the Yen against a broad, trade-weighted basket of ~60 curre
@barchartBREAKING 🚨: Japan Japanese Yen just fell to its weakest level against the U.S. Dollar in 40 years 🤯 👀