Daiwa Securities: Surging oil prices may drag down Japan's trade balance

According to Golden Ten Data on March 9, Daiwa Securities estimates that if crude oil prices remain around $90 per barrel, Japan's monthly trade deficit will reach approximately 1 trillion yen. The institution's estimates show that if prices exceed $120, the trade deficit could expand to nearly 2 trillion yen. "Changes in the trade balance usually have an impact on the USD/JPY exchange rate, with a lag of about one to one and a half years. If crude oil prices remain high, it is expected to put further downward pressure on the yen," Daiwa strategists said.