Home›Forex›Major Pairs›Yen slips after Japan’s current account unexpectedly t…

Yen slips after Japan’s current account unexpectedly turns to deficit

Japan’s Ministry of Finance said June’s current account swung to a JPY 92.3 billion deficit, with higher crude oil prices and larger dividend payouts contributing.

Reported · Written up by our desk · Major Pairs

The Japanese yen weakened against major currency peers on Monday, trading about 0.6% lower near 158.80 per US dollar during the European session, according to FXStreet.

FXStreet said selling pressure followed data from Japan’s Ministry of Finance showing June’s net flow from goods, services, and interest payments turned into a deficit of JPY 92.3 billion versus a surplus expected at JPY 1,512 billion. In May, the current account surplus was JPY 3,968.3 billion, with higher crude oil prices and significant dividend payouts to foreign investors driving higher outflows.

On policy, FXStreet noted that the Summary of Opinions from the July Bank of Japan meeting showed most officials continue to support a tightening bias, while one member favored faster tightening than markets currently expect amid upside price risks.

FXStreet added that traders are looking ahead to US Consumer Price Index data due Wednesday for fresh cues on Federal Reserve policy, after markets trimmed hawkish rate expectations following a weak June nonfarm payrolls report.

Latest closeWTI crude $78.07 ▲3.8%

More like this

Sources