Japan’s current account surplus expanded in December, buoyed by a trade balance that moved into surplus and spending by a surge of incoming tourists.
The surplus in the current account, the broadest measure of Japan’s trade with the rest of the world, rose fourfold on year to Y960.7 billion, the finance ministry said Monday. That was the 18th consecutive month in the black and was slightly narrower than the Y1.0 trillion surplus forecast by economists surveyed by the Nikkei and The Wall Street Journal.
Japan has marked large current account surpluses in recent months as a weak yen helps boost the value of returns on overseas stock and bond holdings in yen terms. Adding to the surpluses, Japan’s trade balance has improved as lower imported fuel prices bring down the nation’s import bill.
While Japan’s primary income surplus fell 5.1% on year in December to Y1.01 trillion, the amount was the second-largest surplus on record for the month. The trade balance swung to a Y188.7 billion surplus.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.