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Yen weakens as G20 backs Japan's stimulus

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(Globalpost/GlobalPost)

The dollar and the euro leaped against the yen Friday after the finance leaders of the Group of 20 biggest economies welcomed Japan's latest monetary moves to boost growth.

The dollar jumped to 99.52 yen at around 2200 GMT, up from 98.23 yen late Thursday.

The euro pushed to 129.94 yen from 128.21.

The euro-dollar rate was flat at $1.3057.

The Japanese currency slid "in the wake of Japanese Finance Minister Taro Aso's commentary that the current policies being implemented by Japan have been deemed acceptable by the G20," said Christopher Vecchio, an analyst at DailyFX.

The finance chiefs of the G20, after a meeting in Washington, gave a cautious endorsement of Japan's huge monetary stimulus program, agreeing it was necessary to boost the country's stagnant economy.

Japan's latest policy actions "are intended to stop deflation and support domestic demand," they said in a statement.

A senior US Treasury official, speaking on condition of anonymity, said that Japanese officials had stressed how the monetary moves would lift demand in the world's third-largest economy, which has been struggling for two decades.

"The latest decision on quantitative easing remedies the situation that was building up for years," said Russian Finance Minister Anton Siluanov, chair of the G20 meeting, at a news conference.

The US dollar, meanwhile, gained ground against the British pound, which fell to $1.5230 from $1.5281 late Thursday.

The greenback rose to 0.9337 Swiss francs from 0.9326.

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http://www.globalpost.com/dispatch/news/afp/130419/yen-weakens-g20-backs-japans-stimulus