Japan’s Imports Drop Again, Yen Strengthens 10%, Trade in Surplus

Japan’s trade balance was in surplus in March as the stronger yen reduced the cost of energy and other imports, while exports fell.

Overseas shipments dropped 6.8 percent from a year earlier, while imports declined 14.9 percent, leaving a surplus of 755 billion yen ($6.9 billion). That was less than the 834.6 billion yen forecast in a survey.

Even as concern rises among Japanese policy makers that the yen’s 10 percent appreciation this year will undermine exports, the gain cuts the nation’s import bill. The average oil price declined 21 percent in March this year from the same month in 2015, cutting Japan’s fuel costs.