Japan’s trade deficit widens to JPY 621.8 billion in July

Japan’s trade deficit has widened to JPY 621.84 billion in July, data showed, from JPY 61.33 billion in July of 2023.

In comparison, market consensus had pointed to a shortfall of JPY 330.7 billion.

Total imports went up 16.6% year-on-year to a 19-month high of JPY 10,241,008 billion in July.

At the same time, Japan’s total exports rose 10.3% year-on-year to a 7-month high of JPY 9,619.17 billion in July.

The Japanese Yen was 0.61% weaker on the day against the US Dollar, with the USD/JPY currency pair last trading at 146.144.

The USD/JPY pair briefly slipped below the closely monitored 145 mark, as US 10-Year Treasury yields hit their lowest level since August 5th. Back then, bond yields registered a more than 1-year low after soft monthly employment data triggered fears of a recession.

Meanwhile, Fed Chair Powell’s remarks on Friday at the Jackson Hole economic symposium will be closely examined for any hints on the likely size of a rate cut in September and if interest rates are likely to be reduced at every subsequent policy meeting.