Forex Flash: USD at new 2.5 year highs against Yen – BBH (Barcelona) - The dollar moved to new 2.5 year highs against the yen near JPY89.35, encouraged by a larger than expected current account deficit comment Brown Brothers Harriman analysts.

They writes, “The JPY222.4 bln deficit was more than 10-fold greater than the consensus forecast and is the first current account deficit since January 2012. The deficit was a function of a larger trade deficit and a smaller investment income surplus. Separately, Japan's government approved a JPY10.3 trln stimulus of a JPY13.2 trln extra budget. For the first time in years the supplemental budget will be financed by new debt issuance (5-year bonds).”