The yen fell against the dollar, extending losses that made it the worst-performing major currency in the past three months, after the Group of 20 refrained from censuring Japanese policies driving the decline.
The final G-20 communique released in Moscow on the weekend fell short of last week’s Group-of-Seven statement and means recent trends in major currencies are now set to resume, Morgan Stanley’s foreign-exchange strategy team, led by Hans Redeker in London, wrote in a research note. The fact the G-20 didn’t single out Japan means the yen may weaken toward 100 per dollar in the next few months, UBS AG said in a separate report.
“There was a risk that they might have fired a warning shot at Japan,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp., Australia’s second-biggest bank by market value. “They didn’t do so and that’s helped a rise in dollar- yen.”
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