Japan's current account deficit surges

|By:, SA News Editor

Japan's current account deficit widened to a record ¥592.8B ($5.7B) in November from ¥127.9B in October and surpassed consensus of ¥380.4B.

The increase comes amid a rise in the value of imports, particularly because of the weak yen, and higher demand for foreign energy because of the shutdown of nuclear plants.

The long-term risk is that the deficit could become permanent, which could weaken confidence in Japan's massive debt. That scenario is being held off by a surplus in overseas income.

The Nikkei plunges 3.2% in the first day of trading this week. The dollar rises 0.4% to ¥103.42 after dropping 1.1% overnight. (PR)

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