USD JPY UP AFTER G 20 MEETING
G20 officials who met in Moscow last week refrained from criticizing Japanese policies which are driving the yen down.
The finance ministers stated that exchange rates shouldn't be targeted for competitive purposes but they did not overtly mention Japan. As such, it is inferred that Japan have the all-clear to carry on with their policies in order to stimulate the economy further, as long as their policymakers do not make public statements regarding pushing the economy lower.
The US dollar has jumped rapidly against the yen by 0.73% following the meeting. The yen has dropped 13% in the last three months alone.
Eyes are now turning towards Prime Minister Shinzo Abe as he is forced with the task of selecting a new Bank of Japan governor after Masaaki Shirakawa announced his departure for next month. The announcement could be as early as this week. Possible candidates include Asian Development Bank President Haruhiko Kuroda and Bank of Japan's former deputy governor Toshiro Muto. Abe has pledged that he will choose a governor based on his ability to take strong action to stimulate the economy and to engage in further easing.
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