Upward Movement of the Yen Ahead of the G20 Meeting

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Upward Movement of the Yen Ahead of the G20 Meeting
Upward Movement of the Yen Ahead of the G20 Meeting

With the G20 meeting scheduled for discussion of the low trends of the yen presently, it has showed an increase compared to other currencies this morning. The previous day witnessed this trend of the currency, subsequent to news about Japan being one of the topics for discussion at the meeting, since the movements of the currency have been in focus. A glance at the news noted indicated the yen increasing 0.6% to a value of 92.94 per dollar today, after it lost 0.9% yesterday. The ten gained 0.6% to a value of 124.98 per euro. Looking back in the last three months, the currency of Japan has fallen 17%, with an extremely low performance. The euro increased 4.7% and the dollar fell 1.7%.

The BOJ is expected to make announcements related to the monetary policy on the following day. With the BOJ meeting for two days, an overview of the currencies worldwide showed the upward trend of the Australian dollar, which also reclaimed the support of investors, and the strong hold of the euro, which gave a general indication that the debt crisis can be managed and coped by Europe. The previous day also witnessed the increasing trends of the Italian and Spanish bonds, with both the nations selling 14 billion euros ($18.8 billion) of bills jointly. The ten-year old yields related to Spain fell significantly in three weeks, and the ten-year rate associated with Italy dropped considerably in a month’s duration. With banks repaying the European Central Bank’s emergency loans, available for three years, ahead of time, the balance sheet was observed to have reduced, while those related to BOJ and Federal Reserve increased.

The trends of the yen were also noted as an important topic for the governors of the central banks, and the finance ministers of G7. The excess movements of the currency were highlighted as significant. The meeting is scheduled to include central bankers and ministers of finance of the G20, and comprises of the G7 and the rising economies such as China, India, and Brazil.

With regard to the forex market, the Australian dollar increased 0.5% to a value of $1.0356 from the previous day, recording consecutive gains over two days.