The Japanese yen rose today as the members of the Group of Seven had conflicting views on the efforts of the Japanese government to cub the gains of currency, leading to the view that the yen will pause its downfall.
Forex market participants were worried ahead of the G7 meeting if Japan will be labeled as a currency manipulator. According to some unnamed officials, the yen was indeed discussed during the meeting. The Group released statement, saying:
We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates.
It looks like Japan will be allowed to proceed with its efforts to boost economic growth as long as it will not manipulate the exchange rate directly. That actually means that the yen can go even lower, but for now the currency moves to the upside.
USD/JPY fell from 93.46 to 92.85 as of 4:11 GMT today. EUR/JPY went down from 125.70 to 124.79 and GBP/JPY ticked down from 146.38 to 145.60.
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