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The Japanese yen is climbing

Published 12/19/2016, 08:11 AM
Updated 12/19/2016, 10:09 AM
© Markets Insider

The Japanese yen is climbing.

The currency is up by 0.6% at 117.2330 per dollar as of 7:53 a.m. ET.

Still, the yen has weakened by about 10% against the dollar since the election of Donald Trump in November.

Earlier, data from Japan's Ministry of Finance showed the country's trade surplus narrowed to 152.5 billion yen in November, down from 496.2 billion yen reported in October, as both imports and exports showed improvement.

"The sharp weakening of the yen has contributed to a rebound in the annual growth rate of trade values," Marcel Theiliant, senior Japan economist at Capital Economics, wrote. "However, since imports are invoiced in foreign currency more often than exports, the trade surplus should start to narrow in coming months."

He continued:

"For as start, 75% of all imports are invoiced in foreign currency but only 64% of all exports. Any weakening of the exchange rate therefore lifts the yen-value of imports by more than the yen-value of exports. What’s more, we expect import volumes to rebound next year. Finally, we forecast a rise in the price of Brent crude oil from $55 today to $60 by the end of next year, which will lift the import bill further."

As for the rest of the word, here's the scoreboard:

  • The euro is down by 0.2% at 1.0432 against the dollar. Earlier, the German Ifo Business Climate Index rose to 111.0 in December, up from the prior reading of 110.4, and came in above forecasts of 110.7. "The German economy is in a festive mood," wrote Professor Dr. Clemens Fuest, President of the Ifo Institute.
  • The Australian dollar is down by 0.5% at .7268 against the dollar. Standard & Poor's held Australia's long-term rating at 'AAA,' but said the "government’s worsening forecast fiscal position, as outlined in its latest budget projections earlier today, further pressures the rating."
  • The Russian ruble is up by 0.4% at 61.8608 per dollar, while Brent crude oil, the international benchmark, is little changed at $55.17 per dollar.
  • The British pound is down by 0.8% at 1.2395 against the dollar.
  • The US dollar index is up by 0.2% at 102.96.

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