229

Greenback slumps as G-20 fails to reassure

On Monday, the major Japanese currency managed to strengthen against its key competitors, including the evergreen buck, in Asia trade, as market sentiment decreased after global financial chiefs unveiled their deep concerns as for growing downside risks as well as vulnerabilities in the world economy during Shanghai’s G-20 meeting.  

The US dollar dipped to ¥112.82, compared to Friday’s ¥113.94 in New York.

G-20’s top financial officials informed in their official communique released on Saturday that disorderly movements and excess volatility in exchange rates appear to be a serious challenge for economies, not to mention financial stability. Moreover, the G-20 officials reaffirmed they’d stay away from competitive devaluations of exchange rates.       

In New York, on Friday, the greenback reached a one-week high of ¥114.00 after a set of positive American data, including an upward revision to GDP, to say nothing of renewed speculation regarding Fed’s tightening this year.

However, the greenback lost some of its weekend revenues after China’s stocks slumped on Monday. Furthermore, the Shanghai Composite Index sagged 3.4% after the country’s central bank brought the Yuan to its weakest level for three weeks.

Scroll to top