G7 Minister’s Accept Weaker Greenback

The US dollar appears poised to fall against the other majors as signals from the G7 ministers’ meeting over the weekend suggests that policymakers are more comfortable now with the idea of a weaker US dollar.

The G7 finance ministers and central bankers, who met in Istanbul, broke no new ground on currencies, saying too much foreign exchange volatility tended to threaten economic stability.

Analysts said that left the U.S. dollar open potentially to further weakness, opening the door for a number of currencies including the Canadian dollar, to rise against the greenback.

“In part it is just general U.S. dollar weakness,” said Adam Cole, global head of foreign exchange strategy at RBC Capital Markets in London. “We came through the G7 meeting on the weekend without any concern on the weaker U.S. dollar and that’s just been a signal to sell U.S. dollars generally.”

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