Yen Gains as G-7 Officials Offer Mixed Signals

The yen gained versus the dollar and euro after unnamed Group of Seven officials gave conflicting signals over whether member nations are concerned that excess moves in the Asian currency will endanger trade relations.

Japan’s currency gained at least 0.3 percent against all of its 16 most-traded peers as an official in Washington, who requested not to be identified, said the nations are concerned about excessive moves in the yen and that Japan will be discussed at the Group of 20 meeting this weekend. It later pared some of the advance after a U.K. official who requested anonymity said the G-7 was not singling out an individual country or currency. The pound fell to a six-month low on bets the Bank of England will lower its growth forecast tomorrow.

“People understand that if anyone’s going to have their feet to the fire right now in terms of currency weakness, it’s going to be Japan,” Douglas Borthwick, a managing director and head of foreign exchange at Chapdelaine FX in New York, said in a telephone interview. “Officially, the most important countries are not singling out Japan. It seems that there are a couple that are, but not officially.”


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