Recent aggressive stimulus moves by the Japanese policymakers have weakened the yen
Japan's trade deficit worsened in July, almost doubling from a year ago, as a weak yen boosted import costs.
The deficit for the month rose to 1.02tn yen ($10.5bn; £6.7bn), as imports surged 19.6% from a year ago.
The yen has fallen nearly 25% against the US dollar since November 2012, as policymakers unveiled a series of aggressive measures to revive growth.
A weak yen helps exports, a key driver of Japan's growth, as it makes Japanese goods cheaper for foreign buyers.
Shipments from Japan rose 12.2% in July, from a year ago, the fastest pace of growth since December 2010.
Analysts said that despite the growing trade deficit, the government was likely to continue pursuing its aggressive policies, not least because Japan's economic growth has not picked up as much speed as they would like.
"In the short term the government will focus on its weaker yen policy as its priorities are very clear," Junko Nishioka, chief Japan economist at RBS Securities in Tokyo, told the BBC.
"They want to revive growth in the Japanese economy and a weak yen is key to achieving that goal," she added.
According to data released earlier this month, Japan's growth rate slowed in the April to June quarter, from the previous quarter.
The world's third-largest economy grew at an annualized rate of 2.6% during the period, down from the 4.1% annualized rate in the first three months of the year.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23751029#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
