Exchange Rates Outlook: JPY declines vs GBP, EUR, USD & NZD as G-20 Doesn?t Condemn BOJ policies

Modified: Friday, 19 April 2013 15:38 BST - Written by Ben Hughes

STORY LINK Exchange Rates Outlook: JPY declines vs GBP, EUR, USD & NZD as G-20 Doesn?t Condemn BOJ policies

The Japanese Yen resumed its decline, falling for a fourth day against the US Dollar (JPY/USD) after Japanese finance Minister Taro Aso said that Japan’s stimulus policies have gone unopposed at the G-20 meeting in Washington.

The Yen has dropped by around 1.1% against all of its major counterparts as speculation of further easing helped the currency slide 20% against the US Dollar in the past six months. The JPY/AUD is today trading down -1.11%, JPY/CHF -1.26%, and JPY/EUR -1.28%.

Given that several nations have expressed concerns regarding the risks associated with devaluing currencies through fiscal policy, some industry experts expected the Japanese central bank to be censored for its unprecedented action when the G-20 met this week, and the Yen fluctuated accordingly.

“The comments from Finance Minister Aso that the plans are seen as unopposed clearly was a trigger point” for selling the yen, said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. “A moderate weakening is still on the cards. It looks like we’re going to grind toward 100” yen per dollar, he said.

With the Yens devaluation unopposed, the Asian currency adopted a bearish relationship with its peers, declining against several of its most traded rivals and notably weakening to 99.18 against the US Dollar.

However, while the G-20 appears unconcerned by the Yen’s fall, the South Korean Finance Minister has expressed fears that it could put his nation’s economy at serious risk by damaging export competitiveness.

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TAGS: American Dollar Forecasts Daily Currency Updates Japanese Forecasts