Japan’s economic policies, which have driven down the yen’s value and given local exporters a powerful boost, are expected to be in the firing line at a meeting of G-20 finance ministers. But perhaps it’s time to cut Japan a little bit of slack, some analysts say.
Policymakers from Asia and Europe have stepped up criticism of Japan, where expectations for aggressive monetary easing have pushed the yen down 15 percent against the dollar over the past three months. The yen has shed 20 percent of its value against the euro and fallen 13 percent versus South Korea’s won over the same time period.
While the yen has fallen sharply and quickly, its weakness should be seen in the context of a period of prolonged strength, said Vasu Menon, vice president for wealth management at OCBC Bank.
“The yen is weakening from a position of extreme strength,” he told CNBC Asia’s “Squawk Box.” “So, I think the G-20 will cut Japan some slack.”
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