The Japanese current-account surplus narrowed in November, stimulated by the yen's ongoing appreciation along with the weakening overseas demand which jeopardizes the nation’s recovery from the March earthquake.
The Japanese economy released today the data of the current account for November, where the current–account surplus shrank by 86% to reach 138.5 billion yen ($1.8 billion), compared with the prior surplus of 562.4 billion yen; also it exceeded expectations of 74.2% (248.4 billion yen) and narrowed below the economists' expectation.
Also, the figures of the nation's trade balance for November was also released, where the trade-balance deficit massively widened to -585.1 billion yen, compared with the prior reading of -206.1 billion yen, yet it came below expectations of -599.4 billion yen. ,as the strong yen is pulling companies down even as they try to recover and there is no way Japanese companies can overcome the strong yen.
The growth's slowdown in China and Europe along with the continuing yen's appreciation both have negatively damped demand for the Japanese products from companies such as Nissan Motor Corp. and Sony Corp.
This drop in the Japanese trade balance pushes the nation closer to a current-account deficit, and forcing the developed world’s largest borrower to rely more on foreign investors for funds.
As a result for the strong yen, the third world's economy and Asia's second economy is currently facing a retreat in exports, as the exports retreated by 3.1% compared to the imports, as it rose by 14%, which is indicating that the strong yen is pulling the companies down even as they try to recover and also indicating that the Japanese companies can not overcome the strong yen.
Finally, the USD/JPY pair is slightly changing and currently rising and trading around the level of 76.87, after recorded its highest price at 76.91 and lowest price at 76.82.
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