The yen nears a 40-year low as Japan returns to a trade deficit; the energy shock is reaching import bills

Japan recorded a June trade deficit of 406.9 billion yen, reversing a surplus a year earlier. Imports rose 25% to 11.3 trillion yen as oil costs and a weaker currency lifted the bill, while exports rose 19% to 10.9 trillion yen. The yen briefly weakened to around 163 per dollar, its lowest level since 1986.