Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

U.S., Japan disagreement on yen moves overshadows G7 meeting

share with twitter share with LinkedIn share with facebook
share via e-mail
05/21/2016 | 06:41am EDT
Participants of the G7 finance ministers and central bankers hold their first session at the G7 finance ministers and central bankers meeting in Sendai

SENDAI, Japan (Reuters) - The United States issued a fresh warning to Japan against intervening in currency markets on Saturday as the two countries' differences over foreign exchange overshadowed a Group of 7 finance leaders' gathering in the Asian nation.

Japan and the United States are at logger-heads over currency policy with Washington saying Tokyo has no justification to intervene in the market to stem yen gains, given the currency's moves remain "orderly".

The rift was on full show at the G7 finance leaders' meeting in Sendai, northeastern Japan, with U.S. Treasury Secretary Jack Lew saying he did not consider current yen moves as "disorderly" after a bilateral meeting with his Japanese counterpart.

"It's important that the G7 has an agreement not only to refrain from competitive devaluations, but to communicate so that we don't surprise each other," Lew told reporters on Saturday. "It's a pretty high bar to have disorderly (currency) conditions.

Japanese Finance Minister Taro Aso said there was no "heated debate" on the yen with Lew, and that it was natural for countries to have differences in how they see exchange-rate moves. But the meeting with Lew did not stop him from issuing verbal warnings to markets against pushing up the yen too much.

"I told (Lew) that recent currency moves were one-sided and speculative," Aso said in a news conference on Saturday, adding that the yen's gains in the past few weeks have been disorderly.

While Aso said his G7 counterparts reaffirmed the importance of exchange-rate stability, Japan received no public endorsements from other G7 members for intervention to contain "one-sided" yen rises.

"There is a consensus that monetary policy is well-adapted and there are no big discrepancies in currencies, so there is no need to intervene," French Finance Minister Michel Sapin told reporters after the two-day G7 gathering concluded on Saturday.


As years of aggressive money printing stretch the limits of monetary policy, the G7 policy response to anaemic inflation and subdued growth has become increasingly splintered.

G7 leaders called for a mix of monetary, fiscal and structural policies to boost demand but left it to each country to decide its own policy priorities - dashing Japan's calls for more aggressive joint fiscal action.

Germany has shown no signs of responding to calls from Japan and the United States to boost fiscal spending.

"The most important are structural reforms... there are more and more (in the G7) recognizing that structural reforms are crucial," German Finance Minister Wolfgang Schaeuble said at a briefing in Sendai.

Lew also urged Japan to keep fiscal policy loose, warning that proceeding with a scheduled sales tax hike next year could be damaging to its economy unless it was mitigated by additional fiscal spending.

"Obviously Japan has to make its own judgment on the course to take. But the critical consideration has to be not to put drag on the economy," Lew said on Saturday.

While Aso has publicly warned of intervention after the yen's recent rise to 18-month highs, some economic policymakers have signaled that they are not too worried the yen will derail a fragile economic recovery.

(Additional reporting by Gernot Heller, Stanley White, Sumio Ito and Takashi Umekawa; Editing by Sam Holmes)

By Leika Kihara and Tetsushi Kajimoto

Stocks mentioned in the article
ChangeLast1st jan.
BANK OF JAPAN 0.84% 36000 End-of-day quote.-2.70%
EMERGING 0.00% 1.0E-6 Delayed Quote.-99.00%
NORTHEAST 900.00% 1.0E-5 Delayed Quote.900.00%
UNITED INC 0.14% 1461 End-of-day quote.3.03%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
12:02aXIAOMI : The Potential of Core Blockchain Project SCRY.INFO
06/25Oil prices jump as U.S. crude stocks fall, Middle East worries add support
06/25EXCLUSIVE : Philadelphia refinery to seek closure after fire - sources
06/25ASIA MARKETS: Asian Markets Quiet On Lowered Expectations For Fed Rate Cut, U.S.-China Trade Deal
06/25EXCLUSIVE : Investors with $34 trillion demand urgent climate change action
06/25NEWS HIGHLIGHTS : Top Company News of the Day
06/25NEWS HIGHLIGHTS : Top Global Markets News of the Day
06/25CENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : 2019 Summer Davos to focus on globalization in new era
06/25Jamaica through to quarters with 1-1 draw against Curacao
Latest news "Economy & Forex"