10 May 2013
Forex Flash: USD/JPY100, Japan poised for export boon? - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the Financial Times tells us on the front page that the "yen's move through 100 to the dollar sets the stage for export boon."
Though it does not quote anyone saying that, they add that it is the inherited wisdom. Earlier today, they note that Japan reported its March current account figures and the reason the largest surplus in a year was reported did have something to do with a weaker yen, but it was not in the trade account, which remained in deficit. They write, “It was not about the goods market, but the capital market. Despite the lower foreign yields, the depreciation of the yen boosts the yen-value of the foreign investment flows. The investment income surplus swelled to JPY1.71 trln from JPY1.41 trln in February and JPY1.50 trln in March 2012.”
Though it does not quote anyone saying that, they add that it is the inherited wisdom. Earlier today, they note that Japan reported its March current account figures and the reason the largest surplus in a year was reported did have something to do with a weaker yen, but it was not in the trade account, which remained in deficit. They write, “It was not about the goods market, but the capital market. Despite the lower foreign yields, the depreciation of the yen boosts the yen-value of the foreign investment flows. The investment income surplus swelled to JPY1.71 trln from JPY1.41 trln in February and JPY1.50 trln in March 2012.”