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Japanese exports fall on strong yen and euro troubles | Japanese exports fall on strong yen and euro troubles |
(40 minutes later) | |
Japanese exports have fallen again as demand for the country's goods continues to suffer. | Japanese exports have fallen again as demand for the country's goods continues to suffer. |
Overseas shipments fell 4.5% in November from a year earlier, Ministry of Finance data showed. | Overseas shipments fell 4.5% in November from a year earlier, Ministry of Finance data showed. |
Separately, the Bank of Japan will make a decision on Wednesday on whether to raise the cost of borrowing. | |
The strength of the Japanese yen as well as the ongoing European debt crisis have weighed on external demand. | The strength of the Japanese yen as well as the ongoing European debt crisis have weighed on external demand. |
'Adverse effects' | |
Japan's economy recovered from a recession that was sparked by the devastating tsunami and earthquake in March. | |
However in recent months the boost from recovering supply chains and restored production facilities has started to diminish. | |
Japanese exports came in at 5.2 trillion yen ($66.8bn; £42.6bn) in November, falling for the second straight month. | |
Imports rose 11.4% to 5.88tn yen, the ministry said. That lead to an expansion in the trade balance deficit to 684.7bn yen. | |
Analysts said adding to the problems was the effect of the weakness in the global economy. | |
"The adverse effect of the slowdown in Europe through a drop in Europe-bound exports and possible spillover onto demand in Asia has begun to emerge," said Naoki Iizuka from Mizuho Securities in Tokyo. | |
Battling the yen | |
The other challenge that the global economic uncertainty brings is that investors are turning to the yen as a safer investment. | |
That has boosted the currency making Japanese exports more expensive overseas. | |
The problem is such a concern that the government has intervened in the currency markets to try and reduce the impact. | |
On Tuesday authorities said they will expand the funds available for more currency interventions in the future. |