As the US President and Japanese Prime Minister prepare to meet in Washington for a good old chin wag the Yen dropped against all of its major competitors.
The Japanese Yen Exchange Rate was in the region of 0.0107 against the US Dollar as of 11:04 am
In light of all the talk of currency wars, the Japanese Yen has been dominating headlines in the last few weeks.
Although the members of the Group of 7 vowed to refrain from manipulating exchange rates through the use of fiscal policy when they met earlier this month, the Group of 20 failed to take such a decisive stance.
Although the G-7’s comments briefly halted the Yen’s fairly rapid recent decline, by not levelling any criticisms at Japan the G-20 allowed it to fall again.
Over the last three months the Yen has shed 13 per cent, and it seems the Asian currency could carry on its downward trajectory.
With many industry experts expecting that US President Barack Obama will not censure Japan’s efforts to boost stimulus when he meets with the nation’s Prime Minister, the Yen lost ground against all of its main currency rivals today. The Yen posted particular losses against a broadly strengthening Euro.
The official aim of the leaders gathering is to consolidate economic ties and fortify their security alliance – particularly important given Japan’s recent disputes with China.
As Japanese PM Shinzo Abe stated: ‘It is important for us to have [China] recognise that it is impossible to try to get their way by coercion or intimidation. In that regard, the Japan-US alliance, as well as the US presence, would be critical.’
Whether Obama and Abe will be touching on the controversial issue of currency valuations when they meet in Washington has not been expressly confirmed, but as analyst Kumiko Gervaise asserted: ‘the market will be watching how supportive the US will be for Abe’s economic policies. If they see approval for easier monetary policy, the Yen can weaken further.’
Current GBP Exchange Rates
The Japanese Yen to Pound Sterling (JPY/GBP) exchange rate is trading at 0.0070
The Japanese Yen to Euro (JPY/EUR) exchange rate is trading at 0.0081
The Japanese Yen to US Dollar (JPY/USD) exchange rate is trading at 0.0107
The Japanese Yen to Australian Dollar (JPY/AUD) exchange rate is trading at 0.0104
The Japanese Yen to New Zealand Dollar (JPY/NZD) exchange rate is trading at 0.0129
The Japanese Yen to Canadian Dollar (JPY/CAD) exchange rate is trading at 0.0109
These exchange rates were correct as of 11:04 am
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