Japan trade deficit hits record as yen weakens

http://www.bbc.co.uk/news/business/market_data/currency/12/14/default.stm

Japan’s monthly trade deficit hit a record in January after its recent aggressive monetary policy stance weakened its currency sharply.

Exports rose in January, the first jump in eight months, as its goods became more affordable to foreign buyers.

However, a weak currency also pushed up its import bill resulting in a monthly trade deficit of 1.6tn yen ($17.1bn; £11.1bn), a 10% jump from a year ago.

Japan’s deficit has also been impacted by an increase in fuel imports.

The world’s third-largest economy has seen a rise in fuel imports, as most of Japan’s nuclear reactors continue to remain closed.

Japan’s imports rose 7.3% in January, from a year earlier. One of the biggest jumps was in the import of liquefied petroleum gas (LPG), which surged more than 28%.

Meanwhile, exports rose 6.4%, driven up mainly by shipments of manufactured goods, the customs and tariff bureau said.

To continue reading the article, please go to http://www.bbc.co.uk/news/business-21515024.

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