Japan’s finance minister Suzuki
- says is closely watching FX moves
- appropriate actions will be taken on FX if needed
- won’t comment on FX levels
Nothing unusual from Suzuki here – run of the mill jawboning to try to support yen. USD/JPY is around 155.39 and near the bottom end of its morning range here in Asia.
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Some data just released:
Also released were Current Account data for Japan’s 2023/24 Fiscal year (April 2023 to March 2024). The current account surplus came in at 25.34 tln yen, its largest ever.
More on the “current account”
- refers to a component of a country’s balance of payments that measures the flow of goods, services, investment income, and unilateral transfers (such as remittances and foreign aid) between the country and the rest of the world.
- The current account is divided into several categories:
- Trade Balance: The value of exported goods minus the value of imported goods.
- Net Exports/Imports of Services: Such as tourism, software services, etc.
- Net Investment Income: Includes income from assets held overseas, such as dividends and interest, minus similar payments made to foreign investors who own assets in the country.
- Unilateral Transfers: Transfers that don’t involve a quid pro quo, such as remittances, foreign aid, grants, etc.
- A positive current account balance indicates that a country is exporting more than it is importing, effectively lending to the rest of the world. Conversely, a negative current account balance means that a country is importing more than it is exporting and is thus borrowing from other countries. The current account, together with the capital and financial accounts, make up a country’s balance of payments, providing a comprehensive view of a country’s economic transactions with the rest of the world.
This article was written by Eamonn Sheridan at www.forexlive.com. Source