Japanese yen is weakening again, dropping as world leaders fail to criticize Japan’s aggressive easing efforts in the name of economic stimulus. Without pressure to stop easing, there is speculation that Japan’s campaign to weaken the yen will soon be back on track.
Even as US President Barack Obama prepares to meet with Japanese Prime Minister Shinzo Abe, the yen is dropping. Many thought that Japan would receive some criticism at the G-20 meeting last weekend for its aggressive easing policies. However, without any criticism on the heels of a G-7 pledge not to engage in currency war, many think that Japan is ready to move forward.
Abe is known for his aggressive easing stance, and there are rumors that the next Bank of Japan head will be more amendable to following the government line on easing going forward. No one expects Obama to mention Japan’s penchant for keeping the yen weak, so there is the expectation that the currency will continue to fall in the future.
At 15:30 GMT Japanese yen is mostly lower, although the euro’s problems mean that the 17-nation currency is weakening even against the Asian currency. USD/JPY is up to 93.2145 from the open at 93.1200. EUR/JPY is down to 122.6950 from the open at 122.8050. GBP/JPY is up to 142.3600 from the open at 124.0250.
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