Week in FX Asia – Yen Continues Fall as G20 Issues no Objection to Japan

This week's G20 meeting in Washington saw the Japanese currency discussed at length and with anticipation given the comments about the yen's decline. The world's largest 20 economies were satisfied with the explanation from the Bank of Japan that its measures were not aimed at weakening the currency, but rather at boosting growth and price stability. The yen has dropped 20% in value since the measures were implemented.

Next Thursday the Consumer Price Index in Japan will be reported and will give further insights into how the measures have affected the direct goal of price stability and 2% inflation set by PM Shinzo Abe. The best argument from the BoJ was reiterating that the measures complied with those agreed in the previous G20 meeting.

The currency is near the 100 yen per dollar level which has proven resilient but it is now closer to breaking above after the IMF and finance ministers from the largest economies have shown their support to...