By Ira Iosebashvili and Hiroyuki Kachi
The dollar hit its highest level in two weeks against the yen
Monday after a larger-than-expected jump in Japan's trade deficit
led investors to sell the currency.
The U.S. dollar recently traded at 102.61 yen, up 0.2% from a
close of Y102.43 in late Friday trading. It was the highest level
for the dollar against the yen since April 8.
Markets were thin, with London closed for the Easter
holiday.
Japan's Ministry of Finance released data Monday morning showing
a trade deficit of Y1.45 trillion in March, the largest ever for
the month and marking a record 21 straight months of shortfalls.
That was much worse than the median forecast for Y1.07 trillion
deficit in a survey of economists by The Wall Street Journal and
Nikkei. A trade deficit would suggest the supply of yen in the
economy is outpacing demand.
The data suggested that Japanese officials may need to boost the
economy by easing monetary policy further, a move that would weigh
on the yen, said Omer Esiner, chief market strategist at
Commonwealth Foreign Exchange. Aggressive monetary stimulus by
Japan's central bank has already helped drive Japan's yen down
roughly 20% since late 2012.
"It's becoming clearer that Japanese policy makers may need to
act. That makes the yen vulnerable to more weakness in the near
term," Mr. Esiner said.
The euro traded at $1.3792, down 0.1%. It was stronger by 0.1%
against the yen, to $141.55.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com