On Monday, European Central Bank President Mario Draghi announced that "there is no currency war" following a declaration by the U.S. Treasury, to the effect that Japan must refrain from competitive devaluation of the Yen.
The U.S. Treasury had said that Japan must "remain oriented towards meeting respective domestic objectives using domestic instruments and to refrain from competitive devaluation."
Draghi stated that recent stimulus announced by the Bank of Japan (BoJ) is "determined by domestic policy considerations." The statement comes ahead of Finance ministers and central bankers from the G-20 nations set to gather in the next couple of days in Washington.
The U.S. Treasury had said that Japan must "remain oriented towards meeting respective domestic objectives using domestic instruments and to refrain from competitive devaluation."
Draghi stated that recent stimulus announced by the Bank of Japan (BoJ) is "determined by domestic policy considerations." The statement comes ahead of Finance ministers and central bankers from the G-20 nations set to gather in the next couple of days in Washington.
To date, Japan has been criticised by trading partners who say that moves to weaken the Yen have given Japan's exporters an unfair advantage.
The BoJ announced plans on April 4th to double its holdings of government debt in the next two years. The intention is to bolster its efforts to fight deflation.
Since then, the Yen has continued to weaken, pushed down when Haruhiko Kuroda took over as BOJ governor and when he pledged to do whatever it takes to defeat deflation.
Expect the market to remain choppy as a Yen selling bias seems to have griped investors.
Earlier today the Yen dropped by 0.3% to 126.60 per Euro and by 0.3% to 97.07 per Dollar. The Dollar fell 0.1% to $1.3042 per Euro.
Later today the U.S. Labor Department is expected to announce that inflation, as measured by consumer prices, had stalled in March having climbed by 0.7% in February.
The BoJ announced plans on April 4th to double its holdings of government debt in the next two years. The intention is to bolster its efforts to fight deflation.
Since then, the Yen has continued to weaken, pushed down when Haruhiko Kuroda took over as BOJ governor and when he pledged to do whatever it takes to defeat deflation.
Expect the market to remain choppy as a Yen selling bias seems to have griped investors.
Earlier today the Yen dropped by 0.3% to 126.60 per Euro and by 0.3% to 97.07 per Dollar. The Dollar fell 0.1% to $1.3042 per Euro.
Later today the U.S. Labor Department is expected to announce that inflation, as measured by consumer prices, had stalled in March having climbed by 0.7% in February.
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