Japan current account deficit hits record 1.6t yen

JAPAN suffered a record current account deficit of nearly 1.6 trillion yen (S$19.64 billion) in January, as surging winter demand for oil and gas sent import costs soaring on the back of a weaker yen. This has triggered fears that Japan's external payments position could end up in deficit for the current fiscal year as a whole. This would, in turn, indicate that Japan was becoming a net importer of capital on a long-term basis, which could send a "sell" signal to investors in Japanese government bonds at a time when government borrowing is at the highest among advanced economies, some economists say.

News of the latest current account deficit - the fourth consecutive monthly deficit - came as...

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