The Japanese Yen have traded higher and rose 0.24% against the greenback after a surprise comeback in Japan’s trade data for June and positive comments from BoJ Governor Ueda.According to the data released by the Japan’s Ministry of Finance, Japan’s balance of trade for June recorded a 43 billion yen ($300 million) trade surplus, moving …
The Japanese Yen have traded higher and rose 0.24% against the greenback after a surprise comeback in Japan’s trade data for June and positive comments from BoJ Governor Ueda.
According to the data released by the Japan’s Ministry of Finance, Japan’s balance of trade for June recorded a 43 billion yen ($300 million) trade surplus, moving back into the black for the first time in nearly two years due to strong exports to the United States and declining energy import prices. A deficit of $46.7 billion was anticipated by analysts. The value of exports rose 1.5%, boosted by shipments of automobiles and construction machinery. Imports fell 12.9%, which was mostly due to large declines in the value of petroleum supplies into Japan.
The surplus is positive news for Japanese firms as they work to recover from the COVID pandemic’s effects. In the Bank of Japan’s most recent quarterly tankan report, which was published earlier this month, confidence among businesses increased across the board, confirming the view held by the institution that the country’s economy is steadily improving.
On the other hand, ongoing concerns over slowing economic growth, geopolitical tensions and worsening relationship between U.S-China also offers further support for the Yen as safe-haven. On Wednesday, China’s ambassador to Washington stated that China does not desire for a trade or tech war but will retaliate if the US places more restrictions on imports of machinery used to produce sophisticated semiconductors. On Russia front, any ships sailing toward Ukrainian ports in the Black Sea would be seen as potential carriers of military supplies and party to the conflict from Thursday, according to the Russian defense ministry.
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