Dollar falls against yen as trade deficit hits record

The dollar has depreciated against the yen as Japan’s trade deficit hits a fresh record.


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By :  ,  Financial Analyst

The dollar has lost ground in trading with the Japanese yen today (February 20th), as the world's third-largest economy reports a new record trade deficit.

Official reports show that Japan's exports increased by 6.4 per cent in January – the first jump in eight months – as goods became better value for money for overseas markets.

However, a depreciating currency also pushed up the nation's import bill, leading to a monthly trade deficit of 1.6 trillion yen (£11.1 billion) – which is a ten per cent rise on a year ago.

Japan has witnessed a rise in fuel imports, as many of the country's nuclear reactors remain closed after the devastation of the tsunami and earthquake nearly two years ago.

As such, imports rose by 7.3 per cent year on year, with liquefied petroleum gas imports surging by over 28 per cent.

At 08:45 GMT, the dollar retreated by 0.2 per cent versus the yen to $1 buying 93.370 yen.

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