Japan logs trade deficit in March on weak yen, expensive oil

Japan’s weakening yen raised more alarm in Tokyo on Wednesday as the federalgovernment reported a bigger-than-expected trade deficit mainly due to skyrocketing expenses for imports of oil, food and other requirements.

The deficit of 412 billion yen ($3.2 billion) for March was lower than the previous month’s 670 billion yen however was quadruple experts’ approximates and a turnaround of the 615 billion yen surplus taped a year earlier for the world’s third-largest economy.

The weaker yen assists make Japanese exports more competitive abroad and fattens benefits when they are transformed from dollars to yen, however it likewise raises costs both for customers and companies.

Japan’s financing minister, Shunichi Suzuki, and other leaders haveactually revealed issue over the dollar’s sheer climb, stating abrupt modifications in exchange rates include to service dangers.

Earlier, the issue was that the dollar would increase to the 130 yen level by the year’s end, Richard Katz, editor-in-chief of The Oriental Economist, stated in a commentary.

But “The specter of an out-of-control flight from the yen is setting off alarm bells in Tokyo,” Katz stated.

Suzuki was due to satisfy this week with U.S. Treasury Secretary Janet Yellen and goover currency concerns, though it’s uncertain what if anything Washington would be able to do as the Fed hasahardtime to bring inflation under control.

The Japanese yen has deteriorated versus the dollar as the Federal Reserve hasactually started raising interest rates to tamp down inflation that is at 40-year highs. Higher rates bringin financiers who buy dollars and sell other currencies, like the yen.

Despite increasing costs for imports, Japan’s main bank has kept its secret interest rate at minus 0.1% for years, attempting to pull the economy out of the doldrums as the nation ages and its populati