The Japanese yen on Wednesday lost value against the world's reserve currency after the nation hosting the globe's third-largest economy released economic data indicating a record trade deficit last month, according to Bloomberg.
The yen also was pulled down as analysts and policy makers eye the policy-making arm of the U.S. Federal Reserve for a decision about whether it will taper monetary stimulus measures. The decision is likely to come on Wednesday, when the body is slated to adjourn two days of meetings to discuss the matter.
"The weak yen is having its effects on Japanese exports albeit slowly, giving carmakers some room to cut prices," senior economist Taro Saito with NLI Research Institute told Reuters on Wednesday. "As for China, you cannot expect demand there to accelerate from now on as the Chinese economy is heading for a stable slowdown."
The yen fell about 0.2 percent against the U.S. dollar after marking advances of 0.7 percent during the past three days.
Japanese exports climbed for the ninth consecutive month in November, led by autos sent to destinations in the U.S. and China, according to Reuters.
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