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.

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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.

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