FXStreet (Bali) - According to Yujiro Goto, FX Strategist at Nomura, despite the Japanese government will likely restart nuclear generators, the Japanese trade deficit should continue.

Key Quotes

"We do not expect the possible restarting of nuclear generators to improve the Japanese trade balance meaningfully though."

"As we have been reiterating, a large part of the increase in nominal mineral fuel imports can be explained by price increases. The restarting of nuclear generators will reduce the need for LNG imports, but high energy prices will keep depressing the Japanese external balance."

"Furthermore, the possible restarting of nuclear generators is unlikely to see the capacity utilization ratio recover to levels before the quake. Generators need to pass a Nuclear Regulation Authority inspection before they can restart, and power companies have submitted requests for inspection for 17 generators now."

"The capacity utilization ratio will likely be around 20% at maximum for now. The restarting of generators currently under inspection cannot offset the negative effects of the shutdown of generators on the external balance, but the price factor is more important even if the restarting could offset the entire negative impact."