The yen edged down against the dollar and euro in Asia on Wednesday after Japan posted its worst ever April trade deficit, fuelling yen-negative sentiment.
Official data released on Wednesday showed that Japan incurred a trade deficit for the 10th straight month in April, with the shortfall expanding almost 70 percent year-on-year as a weak yen pushed up import bills.
It was the biggest deficit for the month of April in comparable official data that goes back to 1979.
Last night, the Bank of Japan kept the yen on vulnerable ground by repeating its plan to achieve 2% inflation through its radical asset buying plan.
Since early November, when the Japanese parliament was dissolved, the yen’s trade-weighted exchange rate has fallen by 22%. But let’s put this move in perspective: the yen’s recent decline has unwound only half of its rise between late 2008 and the middle of 2012.