Yen surges against greenback on Japan’s trade surplus
On Monday, the Japanese yen managed to gain again its key rivals during Asia trade, as Japan posted a surprising trade surplus. Along with weaker Tokyo shares it greatly backed up buying of the Japanese currency as one of the safest assets in the market.
The evergreen buck drifted lower to ¥109.64 before trading at ¥109.71, compared to Friday’s outcome of ¥110.22, late in New York.
Earlier during Asia trade, Japan officially reported that its April trade surplus greatly exceeded forecasts, hitting ¥823.5 billion. That’s far above the market prediction of ¥535 billion. A currency tends to surge after a time lag when the country reported a considerable trade surplus.
Market participants kept up the yen-buying after the Nikkei Stock Average dropped right from the opening bell. In fact, the benchmark dived 0.5% late during the trading session after dipping as much as 1.9% when Taro Aso, Japan’s finance minister told that on Saturday, he had informed Jacob Lew, US Treasury Secretary that Japan would increase its sales tax.