The Japan’s Yen rose against the Greenback, following the report on the country’s trade balance on Sunday. The USD/JPY exchange rate gained 13 base points or 0.12% to 106.27.
The Japan’s exports grew ¥0.37T in January, surpassing forecasted ¥0.14T and showing 14th month of growth in a row. Meanwhile, the country’s Ministry of Finance showed that a surge in imports put trade deficit in the red for the first time since May. However, higher imports indicating an improvement in domestic demand confirmed that the BoJ moved forward in efforts to set up a self-sustaining recovery of the Japan economy. Experts warned that the strengthening Yen is a risk, as it is likely to make imports cheaper, putting pressure on inflation.
