Currency manipulation: Yen falls to multi-year low versus dollar

UNITED KINGDOM: In foreign exchange deals the dollar Thursday vaulted past the key 100-yen barrier for the first time in more than four years, as Tokyo’s aggressive stimulus efforts to lift the Japanese economy continue to depress its currency, helping to boost demand for Japanese exports.

This was discussed during the G-7 meeting held at England, where British finance minister George Osborne commented on the renewed market focus on “currency wars” after the yen hit new dollar lows. Japan has so far denied allegations of sparking a currency war, claiming that they are only trying to bring the economy out of deflation.

The European Union’s Economic Affairs commissioner Olli Rehn said the G7 talks would focus on boosting economic growth rather than currency concerns. His comments come as central banks around the world are again cutting interest rates in a bid to lift growth.

Published in The Express Tribune, May 12^th, 2013.

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