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Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, comments that in the recent G20 meeting of central bankers and finance ministers, the policy makers appeared less concerned about USD strength, and reiterated their view to refrain from targeting exchange rates for competitive purposes.
Key Quotes
“The recent sharp strengthening of the US dollar has been in focus at this week’s G20 meeting of central bankers and finance ministers.”
“US Treasury Secretary Lew has stated that recent moves in the currency market show how the US is “stronger than a lot of the economies that we compete with”.”
“US policymakers do not appear overly concerned yet over US dollar strength.”
“A draft G20 statement obtained by Bloomberg reiterated that they “will stick to our previous exchange rate commitments and will resist protectionism”.”
“The G20 have frequently committed to refraining from targeting “exchange rates for competitive purposes”.”
“The draft also emphasized that “in an environment of diverging monetary policy settings and rising financial market volatility, policy settings should be carefully calibrated and clearly communicated to minimize negative spill overs”.”
“The widening policy divergence between the Fed and other central banks continues to favour a stronger US dollar.”
Key Quotes
“The recent sharp strengthening of the US dollar has been in focus at this week’s G20 meeting of central bankers and finance ministers.”
“US Treasury Secretary Lew has stated that recent moves in the currency market show how the US is “stronger than a lot of the economies that we compete with”.”
“US policymakers do not appear overly concerned yet over US dollar strength.”
“A draft G20 statement obtained by Bloomberg reiterated that they “will stick to our previous exchange rate commitments and will resist protectionism”.”
“The G20 have frequently committed to refraining from targeting “exchange rates for competitive purposes”.”
“The draft also emphasized that “in an environment of diverging monetary policy settings and rising financial market volatility, policy settings should be carefully calibrated and clearly communicated to minimize negative spill overs”.”
“The widening policy divergence between the Fed and other central banks continues to favour a stronger US dollar.”
