G20 OK with Japan Effort as Yen Falls

The yen started a fresh week on the backfoot after Japan escaped direct criticism from its G20 peers on its aggressive reflationary plans that have weakened the currency and raised international complaints of competitive advantage.

The G20 declined to single out Tokyo but committed to refrain from competitive devaluations and said monetary policy would be directed only at price stability and growth. Japan said this has given it a green light to pursue its policies unchecked.   Traders also said this means the market will happily continue selling the yen.

The dollar rose to 93.90 yen, having bounced smartly from a low near 92.20 on Friday. It is within reach of a 33-month peak around 94.47 set a week ago. The euro is at 125.35, also not far from a 34-month high of 127.71 reached early this month.


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