The Yen weakened beyond 102 to the Dollar for the first time in four and a half years, after Group-of-Seven (G-7) finance officials said that for the moment, they'll accept a slide in the Yen.
The past weekend, G-7 finance ministers and central banker officials again confirmed their commitment made in February, not to target exchange rates.
The policy makers went on to say that they had examined Japan's policies and current strategy and that they will be monitoring its impact on currencies.
By granting tacit approval for Japan's policies, it seems likely to me that the trend of a weakening Yen is set to continue and even gather momentum in the next few days.
The Yen weakness has also been advanced by the release of a report which showed that Japanese investors have become net buyers of foreign bonds.
Earlier today, the Yen traded at 101.59 per Dollar, up slightly from 102.15 which was a level unseen since October 2008. The Yen traded at 131.86 per Euro, while the Dollar remained virtually unchanged at $1.2981 per Euro.
By granting tacit approval for Japan's policies, it seems likely to me that the trend of a weakening Yen is set to continue and even gather momentum in the next few days.
The Yen weakness has also been advanced by the release of a report which showed that Japanese investors have become net buyers of foreign bonds.
Earlier today, the Yen traded at 101.59 per Dollar, up slightly from 102.15 which was a level unseen since October 2008. The Yen traded at 131.86 per Euro, while the Dollar remained virtually unchanged at $1.2981 per Euro.
The Dollar had gained ground against most of its major counterparts after Treasury 10-year yields had risen to their highest level in nearly seven weeks. The rise comes ahead of a speech on monetary policy, by Federal Reserve Bank of Philadelphia President Charles Plosser, on Tuesday.
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