{"id":1677189,"date":"2022-10-07T02:50:46","date_gmt":"2022-10-07T06:50:46","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1677189"},"modified":"2022-10-07T02:51:19","modified_gmt":"2022-10-07T06:51:19","slug":"analysis-japans-current-account-decay-underscores-yens-weakened-stature","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-japans-current-account-decay-underscores-yens-weakened-stature\/","title":{"rendered":"Analysis-Japan\u2019s current account decay underscores yen\u2019s weakened stature"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-japans-current-account-decay-underscores-yens-weakened-stature%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1677189&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Leika Kihara and Tetsushi Kajimoto<\/p>\n<p>TOKYO (Reuters) \u2013     Japan\u2019s current account surplus is likely to have deteriorated in August as the weak yen continues to inflate the cost of imports, casting doubt on the country\u2019s ability to amass foreign wealth and eroding the currency\u2019s prized safe-haven status.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The decline comes as Japan\u2019s foreign reserves, still the world\u2019s second largest after China, slumps after the government\u2019s dollar-selling intervention last month to arrest sharp yen falls.<\/p>\n<p>The world\u2019s third-largest economy likely saw its current account surplus shrink to 122 billion yen ($84.15 million) in August, half July\u2019s level, according to a Reuters poll.<\/p>\n<p>\u201cExport volumes are weakening due to the global economic slowdown, while imports continue to balloon due to elevated energy prices and the yen\u2019s declines,\u201d said Takeshi Minami, chief economist at Norinchukin Research Institute.<\/p>\n<p>The current account data is due at 8:50 a.m. on Oct. 11. (2350 GMT Oct. 10.)<\/p>\n<p>Data released last month showed Japan ran its biggest single-month trade deficit on record in August as a 49.9% jump in imports, driven by surging energy costs and a slump in the yen, outstripped gains in exports.<\/p>\n<p>While Japan continues to offset trade deficits with returns from overseas investment, its worsening balance of payments highlights structural changes in the economy that goes against its image as a trade powerhouse with sufficient ammunition to fund further dollar-selling intervention, analysts say.<\/p>\n<p>Returns from overseas investments have grown steadily in recent years as a result of Japanese firms shifting production away overseas for years as a strong yen made their exports less competitive. Now, policymakers are more concerned the weak yen will drive up import bills and the cost of living.<\/p>\n<p>Once seen as a sign of its export might and a source of confidence in its safe-haven yen, Japan\u2019s current account surplus has shrunk for four straight fiscal years through March due to the country\u2019s worsening trade balance.<\/p>\n<p>Bank of Japan Governor Haruhiko Kuroda has warned that rising import costs, driven in part by the weak yen, would hurt households and companies by draining domestic wealth overseas due to its heavy reliance on fuel and food imports.<\/p>\n<p>Advisers to Prime Minister Fumio Kishida\u2019s top panel also urged the government in April to prevent the current account surplus from shrinking further to avoid a damaging plunge in the yen.<\/p>\n<p>Struggling to arrest unwelcome yen declines, Kishida is now seeking to maximise the benefits of a weak yen such as by drawing more inbound tourism and by promoting agricultural exports.<\/p>\n<p>But analysts doubt whether Japan\u2019s economy can weather the mounting pain from rising inflation and darkening clouds over its export prospects as global recession risk looms.<\/p>\n<p>\u201cJapan\u2019s current account balance may swing to a deficit this year. Although I don\u2019t expect a deficit to stay for good, current account surplus will likely shrink as a trend,\u201d said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities.<\/p>\n<p>\u201cThat might be a reflection of the declining earning power of Japan. To avoid falling into a decay, Japan must strive to make it more attractive as an investment destination.\u201d<\/p>\n<p>($1 = 144.9800 yen)<\/p>\n<p> (Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Sam Holmes)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/analysis-japans-current-account-decay\/attachment\/file-photo-illustration-photo-of-a-japan-yen-note-3\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/tagreuters.com2022binary_LYNXMPEI9609H-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9609H-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Leika Kihara and Tetsushi Kajimoto TOKYO (Reuters) \u2013 Japan\u2019s current account surplus is likely to have deteriorated in August as the weak yen continues to inflate the cost of<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1677189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1677189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1677189"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1677189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1677189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1677189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1677189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}