Japan’s Ministry of Finance released the country’s current account surplus (nsa) which fell, giving a reading of 1679 billion Yen for March versus the expected 1754 billion. February’s figure was a revised 1641 billion yen. Basically the surplus fell 34.3 percent in March from a year earlier, as exports plunged after the country’s devastating earthquake and tsunami battered factory output and crippled supply chains.
The decrease in the current account balance compared with a median forecast for a 31.3 percent decline and followed a 3.0 percent rise in the year to February.
The current account surplus is predicted to contract as exports will decline while imports of fuel and raw materials will rise to meet demand for reconstruction following the March 11 quake.
However, in the meantime, Japan’s current account balance is not expected to change to a deficit anytime soon because income gains from returns on overseas investments account for the bulk of the overall amount. The income balance stood at a surplus of 1.535 trillion yen in March, down 8.0 percent from a year earlier.
After release of the news, the Yen weakened against the Dollar. USDJPY was at 81.02 at newstime, then rose to 81.15 within an hour.