Long preoccupied with the strength of the yen and its drag on the anemic economy, policymakers in Tokyo are now being served a warning about the risks posed by the currency's retreat.
The yen's decline from record highs in recent months coincides with a major shift in the country's energy balance, a change that threatens to hasten its path to a perennial trade deficit.
A record current account deficit in January reported on Thursday was probably a blip, a result of seasonal and one-off factors. But it serves as a reminder that the former export powerhouse may end up in the red and will need to import capital to fund its snowballing debt much sooner than earlier thought. (Reuters)
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