G20 as expected

Currencies Direct September 28th 2009 - < 1 minute read

The G20 meeting concluded with little unexpected emerging .The draft statement promised to maintain policy stimulus for as long as it was necessary and to ensure that policies were in place to rebalance the world’s economies. Other than that, details were sketchy and if hadn’t been for comments from the new Japanese Finance Minister, Mr Fujii followed by a good amount of back-tracking, the meeting might very well have come and gone without causing a ripple in global markets. As it was, Mr Fujii initially stated that he viewed previous intervention as inappropriate and that recent moves were not abnormal which was taken as affirming the new Finance Minister’s non-intervention stance and saw the Yen firm up, reaching 88.25 against a broadly firmer Dollar. The Yen has been in buoyant mood over the last few weeks on repatriation trades ahead of the half-year end and Mr Fujii’s comments added impetus to the Yen buying. This was only tempered when he added that his earlier comments were not a sign of neglect over the Yen’s value and that he is watching the Yen’s rise carefully. He added that he was coming to the view that the move is becoming ‘one-sided’. The Yen softened a little but do not expect any serious weakening prior to October trading…

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