We see Japanese money helped curb the upswing in the yen after the emerging market (EM) shock in late January.Japan posted a C/A deficit of ¥638.6bn in December, the third straight month in the red. The trade deficit worsened on higher fuel imports, while the income surplus was small as per seasonality. We expect a relatively large income surplus in 1H 2014 seasonally, but the C/A surplus looks to remain at a fairly modest level and should not prevent a weakening trend in the yen.
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DB