The Yen Gains As G20 Meeting On Currency Approaches

The Yen Gains As G20 Meeting On Currency Approaches

The yen gained against all major currencies just before the G20 meeting where world leaders are going to discuss the Japanese currencies fluctuation in recent months.

The euro remains high with recent optimism regarding Europe ability to cope with its debt problems. The ECB’s president Mario Draghi noted that huge progress has been made especially in Spain.The euro rose by 2 percent against the dollar as European banks started paying back loans and shrinking their balance sheet as the FED and BOJ expanded their sheets.

The yen gained 0.1 percent to 93,38 per dollar today after it gained 0.9 percent yesterday. The rise comes after it reached its lowest numbers since May 2010 on the 11th of February.

It also strengthened by 0.2 percent to 125.57 per euro, after yesterday’s 0.5 percent increase.

A G-7 statement from its finance ministers and bank governors said that a weaker Japanese currency is acceptable as long as the Japanese government doesn't actively pursue the devaluation of its currency. G-7 spokesperson also stated that its press release was made because of the volatility of the Japanese currency in the last couple of months.

The G-20 meeting where the yen will be a main topic of discussion will take place on the 15th-16th of February in Moscow and it will see the most powerful economies of the world alongside emerging market like Brazil and India.

Posted by James Fried on Wednesday February 13 2013, 4:22 AM EST. Ref: Bloomberg. Link. All trademarks acknowledged. Filed under Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0