The yen weakened, extending losses that have made it the worst-performing major currency in the past three months, after Group-of-20 nations refrained from criticizing Japanese policies driving the decline.
Japan’s currency approached the weakest since May 2010 versus the dollar as Morgan Stanley said the final G-20 communique released in Moscow fell short of last week’s Group- of-Seven statement and means recent trends in currencies may resume. The pound dropped to a seven-month low after Bank of England policy maker Martin Weale said its decline may bolster exports. The euro fell as European Central Bank President Mario Draghi said the economy worsened at the start of this year.
“There’s renewed selling pressure on the yen and it’s a reaction to the G-20 statement,” said Adam Myers, head of foreign-exchange strategy at Credit Agricole Corporate & Investment Bank in London. “Everyone has woken up to the realization that the G-20 couldn’t criticize Japan when many other countries are manipulating their own currency.”
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