The Japanese Yen softened against the US Dollar and British Pound despite the release of data showing that Japanese exports increased for a fourth straight month in June.
According to the Tokyo based Finance Ministry the weak Yen has made Japanese products more competitive with exports rising by 7.4% compared to 2012. The increase was the first rise in June shipments since 2010. The Yen weakened however as economists had been expecting a 10% increase.
“The effect of the Yen’s weakness on exports is becoming very clear,” said Junko Nishioka, cheif economist at Royal Bank of Scotland Group Plc in Toko. ‘The outlook for the Japanese economy is improving now and there are more factors to back up the optimistic view than negative factors.’
‘Given that the state of the US economy influences Japan’s growth far much more than those of China and Europe, we can be optimistic about the Japanese economy’s outlook as long as the U.S. stays in a good shape,” Nishioka added.
Imports increased by 11.8%, making a trade deficit of 180.8 billion Yen. The negative impact of a weak Yen is that imports cost a lot more than they did previously. Whilst it helps exports, Japan is reliant on imports of raw materials.
The weaker than anticipated has seen a number of Japanese shipping companies see their shares fall.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.9634
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 153.6286
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.3210
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 79.4719
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.0173
(Correct as of 11:20 am GMT)
Comments are closed.