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USD/JPY at 99.70 on Bets G-20 Will Endorse BOJ Stimulus

The yen held losses against most major peers on bets Group of 20 finance ministers and central bankers meeting this week will endorse the Bank of Japan’s monetary easing aimed at stoking 2 percent inflation.

Russian Deputy Finance Minister Sergei Storchak said the G-20 probably won’t call for a tapering of stimulus in nations including Japan. The euro traded near a six-week high versus the yen after Greek lawmakers approved austerity measures that clear the way for the next batch of bailout loans. Demand for the dollar was limited after Federal Reserve Chairman Ben S. Bernanke signaled the central bank’s asset purchases, which tend to debase the currency, hinge on economic performance.

“We see the yen weakening further,” said Kengo Suzuki, the chief currency strategist at Mizuho Securities Co. in Tokyo, a unit of Japan’s third-biggest bank by market value. “Markets will expect additional easing once they are convinced that the BOJ will undershoot its price target, so Japan’s monetary policy is tilted toward further accommodation.”

Bloomberg [1]

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