The Japanese Yen is dropping continuously against its major equals. The rumors are in the air that a weaker Yen is supporting exports of Japan. The weaker Yen has boosted the economy and exports are picking up.
As per the recent data issued by the Ministry of Finance of Japan the exports have considerably picked up.
Japanese exports of electronics and cars show a revival of demand in the United States, Europe, and Asia. In July Japan’s trade deficit was at ¥1.02 trillion, which is the equivalent of about $10.4 billion.
However, the increase in exports doesn’t mean that Japan’s economy is out of danger. There are apprehensions that higher oil prices will pull on corporate profits, deferring economic recovery. These fears side bu side with reassurance that a weak yen is supporting the export position, are likely to stimulus the Bank of Japan and other officials to take action.
Shinzo Abe is expected to introduce various steps to support corporate profits and the economy.