Business News

TOKYO, (APP/AFP): The yen picked up Monday after the G7
wagged its finger at Japan over threats to weaken its currency, reminding Tokyo of previous commitments not to intervene in forex markets.
The currency clash was in the spotlight as finance ministers from the
club of rich nations met in northern Japan at the weekend for two days of talks focused on how to boost the global economy.
Going into the meetings, host Japan had hoped that its G7
counterparts — the US, Britain, Germany, Italy, France, Canada — would give it some wiggle room to tame the resurgent yen, as it threatens Japan Inc’s profits.
However, the group agreed on the “importance of all countries
refraining from competitive devaluation”, while US Treasury Secretary Jacob Lew pressed Tokyo to uphold earlier promises not to interfere with exchange rates.
In response, Japan’s finance minister Taro Aso said he told his US
counterpart that Tokyo was merely reacting to “one-sided, abrupt, and
speculative moves” in forex trading.
The yen has seen several steep jumps since the start of the year,
soaring more than 10 percent against the greenback at one stage, in a blow to Japan’s exporters just as the economy slowed.
Bank of Japan Governor Haruhiko Kuroda added his voice to the issue
on Monday, saying that the central bank’s monetary policy — which had helped sharply weaken the yen in recent years — does not target exchange rates.
In afternoon trading, the dollar weakened to 109.92 yen from 110.15
yen in New York late Friday, while the euro was lower at 123.42 yen from 123.50 yen.
The euro fetched $1.1229, edging up from $1.1220 in US trade.