Week in FX Asia – Yen Continues Fall as G20 Issues no Objection to Japan

This week’s G20 meeting in Washington saw the Japanese currency discussed at length and with anticipation given the comments about the yen’s decline. The world’s largest 20 economies were satisfied with the explanation from the Bank of Japan that its measures were not aimed at weakening the currency, but rather at boosting growth and price stability. The yen has dropped 20% in value since the measures were implemented.

Next Thursday the Consumer Price Index in Japan will be reported and will give further insights into how the measures have affected the direct goal of price stability and 2% inflation set by PM Shinzo Abe. The best argument from the BoJ was reiterating that the measures complied with those agreed in the previous G20 meeting.

The currency is near the 100 yen per dollar level which has proven resilient but it is now closer to breaking above after the IMF and finance ministers from the largest economies have shown their support to the current Japanese policies. Before the G20 there were criticisms aimed at the yen’s decline mostly from emerging markets whose currencies were negatively affected as their exports will suffer a disadvantage. The current economic environment still classifies the Japanese policies as domestic measures and in no means an act of “currency war”.



* NZD Reserve Bank of New Zealand Rate Decision
* AUD Consumer Prices Index
* USD Durable Goods Orders
* GBP Gross Domestic Product
* JPY National Consumer Price Index
* JPY Bank of Japan Rate Decision
* JPY Bank of Japan Monetary Policy Statement
* JPY Bank of Japan Governor Kuroda Post-Statement Press Conference
* USD Gross Domestic Product

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza