Asian Session – Yen weakens to 4-year low versus dollar after G20
April 22, 2013 7:37 am
The yen weakened further in early Monday trading as currency markets reacted to the G20 meeting over the weekend. Investors were anxious to see if the G20 would criticize Japan for its recent monetary policies that resulted in weakening the yen, and therefore engaging in a currency war and unfair competition.
The yen hit a new four-year low against the dollar since Japan was not singled out and the Bank of Japan’s stimulus policies were unopposed by the G20, meaning that more policy easing measures would be taken by the central bank.
Bank of Japan Governor Haruhiko Kuroda reiterated on Monday that the G20 countries accepted that Japan’s monetary easing is not aimed at weakening the yen and he said he now feels that he can continue with taking steps to defeat deflation in Japan. The Bank of Japan meets this week after pledging on April 4 to double the monetary base in two years.
In a communique after the G20 meeting was concluded on Friday, the G20 simply said it would be “mindful” of possible side-effects from extended periods of monetary stimulus, without singling out Japan.
The dollar rose close towards the 100 yen level but did not quite reach it. USDJPY hit a high of 99.87 yen, opening the Asian session with a gap up at 99.80 compared to Friday’s close of 99.49 yen.
Euro also rose against the yen to hit 130.65 yen versus Friday’s close of 129.81 yen.
Euro was stable against the dollar after news over the weekend that Italy re-elected Italian President Napolitano, so that the country can proceed with electing a prime minister and putting together a coalition government. There has been a two-month long stalemate since the last elections were not able to form a majority government.
EURUSD opened in Asia at $1.3075 and traded steady between $1.3052 and $1.3083.
The yen weakened further in early Monday trading as currency markets reacted to the G20 meeting over the weekend. Investors were anxious to see if the G20 would criticize Japan for its recent monetary policies that resulted in weakening the yen, and therefore engaging in a currency war and unfair competition.
The yen hit a new four-year low against the dollar since Japan was not singled out and the Bank of Japan’s stimulus policies were unopposed by the G20, meaning that more policy easing measures would be taken by the central bank.
Bank of Japan Governor Haruhiko Kuroda reiterated on Monday that the G20 countries accepted that Japan’s monetary easing is not aimed at weakening the yen and he said he now feels that he can continue with taking steps to defeat deflation in Japan. The Bank of Japan meets this week after pledging on April 4 to double the monetary base in two years.
In a communique after the G20 meeting was concluded on Friday, the G20 simply said it would be “mindful” of possible side-effects from extended periods of monetary stimulus, without singling out Japan.
The dollar rose close towards the 100 yen level but did not quite reach it. USDJPY hit a high of 99.87 yen, opening the Asian session with a gap up at 99.80 compared to Friday’s close of 99.49 yen.
Euro also rose against the yen to hit 130.65 yen versus Friday’s close of 129.81 yen.
Euro was stable against the dollar after news over the weekend that Italy re-elected Italian President Napolitano, so that the country can proceed with electing a prime minister and putting together a coalition government. There has been a two-month long stalemate since the last elections were not able to form a majority government.
EURUSD opened in Asia at $1.3075 and traded steady between $1.3052 and $1.3083.
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