WILL JAPAN RECEIVE CRITICISM AT THE G 20 MEETING
Traders are now betting that Japan may escape criticism from the G-20 meeting in Washington. Finance ministers are meeting tomorrow for a two-day meeting and there is speculation that the yen will not be the main focus.
During the previous G-20 meeting the nations didn't censure Japan, but gave warning not to weaken the yen further. Export-dependent countries like Brazil, Germany and South Korea have expressed their distaste regarding Japan's policies but the yen has only continued to fall with the increase in new monetary stimulus efforts.
Amid the speculation, the yen has halted its rally versus the greenback and has fallen for a second day, dropping a further 0.8% today after a 0.8% decline yesterday. It is reported that the yen has depreciated 20% against the US dollar in the past six months alone. The euro also soared 0.8% against the yen even with a negative outlook for the European economy. Yesterday the IMF revealed a report showing that the European economy is the weakest part of global economy.