Japanese Yen Stumbles as Current-Account Deficit Trumps Expectations
Data released by Japan’s Ministry of Finance showed the nation’s current-account deficit expanded to a record low of 437.3 billion Yen in the month of January. The Economic and Social Research Institute also published data that revealed a 0.7 percent decline in the country’s gross domestic product (GDP), narrowly missing analysts’ expectation of a 0.6 percent drop.
Though the Japanese GDP fell slightly below forecasted, analysts were mostly surprised by the large deficit increase. Since markets expected only a 320 billion Yen deficit, traders rebalanced their portfolios away from the Yen. The USDJPY peaked as high as 81.351 following the data releases.
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