“Japanese Finance Minister Taro Aso said that Japan’s policies went unopposed at a Group of 20 nations’ meeting in Washington, driving the yen lower in the absence of any roadblock for the nation’s monetary stimulus.
Japan explained that its easing is for price stability, Aso told reporters. Central bank Governor Haruhiko Kuroda earlier said that nations understand Japan’s stance, indicating that he expects no censure. The currency traded at 98.59 per dollar as of 3:04 p.m. in Tokyo, down 0.4 percent.
The G-20 will affirm a commitment to avoid competitive devaluation without singling out any nation, according to a draft statement seen by a Bloomberg BNA reporter. The yen has dropped about 20 percent against the dollar in the past six months, the biggest loser among 16 major currencies, on plans for unprecedented easing.
“Chances are high that the result of the G-20 meeting will deliver tailwinds for Japan and yen depreciation,” said Takahiro Sekido, a strategist in Tokyo at Bank of Tokyo- Mitsubishi UFJ Ltd., who formerly worked at the BOJ.
Aso said “no one” opposed Japan’s policies at the meeting, about two weeks after the BOJ unveiled a plan to ramp up bond buying and double the monetary base by the end of 2014.
