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eternalfuture · 21-09-2003, 00:58

Here is the result of G7 meeting in Dubai

A closing statement from a meeting of the Group of Seven finance ministers -- the United States, Britain, Canada, France, Germany, Italy and Japan -- said a flexible currency rate "is desirable for major countries or economic areas" in order to let markets smooth out economic ups-and downs.

Even Japan agreed to support this statement. It seems that Japan will only intervene to smooth the yen appreciation rather than to reverse the direction in USD/JPY.

We all have witnessed that last week there has been no sign of BoJ whatsoever even as the yen continues to appreciate. So, it seems that they have succumbed to the pressure of US and other G7 members.

The question is how far would it go? What is the 'proper' USD/JPY rate?

115? 110? 105? 100?

This leaves another question: What about China? What if China let yuan loose?

21-09-2003, 00:58	#3
eternalfuture Padawan Join Date: Aug 2003 Posts: 892 Downloads: 0 Uploads: 0 Rep Power: 0	The latest... Here is the result of G7 meeting in Dubai A closing statement from a meeting of the Group of Seven finance ministers -- the United States, Britain, Canada, France, Germany, Italy and Japan -- said a flexible currency rate "is desirable for major countries or economic areas" in order to let markets smooth out economic ups-and downs. Even Japan agreed to support this statement. It seems that Japan will only intervene to smooth the yen appreciation rather than to reverse the direction in USD/JPY. We all have witnessed that last week there has been no sign of BoJ whatsoever even as the yen continues to appreciate. So, it seems that they have succumbed to the pressure of US and other G7 members. The question is how far would it go? What is the 'proper' USD/JPY rate? 115? 110? 105? 100? This leaves another question: What about China? What if China let yuan loose?