By Candice Zachariahs and Kristine Aquino - Sep 23, 2011 11:02 AM GMT+0800
The euro maintained a rally from its lowest level in a decade against the yen after the Group of 20 nations pledged a “strong and coordinated” response to challenges facing the global economy.
The 17-nation currency rebounded from an eight-month low versus the dollar as Bank of France Governor Christian Noyer said the nation’s banks are able to handle a default by Greece. The yen was still set for a weekly advance against all 16 major peers as Asian stocks slid. The dollar pared weekly gains versus its most-traded counterparts before meetings of the International Monetary Fund and World Bank.
If the G-20 statement “is enacted, that’s a major, important step and that could provide a floor for risk appetite and for confidence,” said Callum Henderson, global head of foreign-exchange research in Singapore at Standard Chartered Plc. “The good news is the euro is not collapsing.”
The euro gained to 103.28 yen at 12:02 p.m. in Tokyo from 102.64 in New York yesterday. The shared currency yesterday fell as low as 102.22, the least since 2001. It rose to $1.3539 from $1.3465 yesterday, when it reached $1.3385, its lowest since Jan. 19. Japan’s currency traded at 76.32 per dollar from 76.24.
Finance chiefs from the G-20 nations said they will address “renewed challenges” facing the slowing global economy in a statement released after talks in Washington.
The officials said they are “committed to a strong and coordinated international response to address the renewed challenges facing the global economy, notably from heightened downside risks from sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high unemployment.”
To contact the reporters on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net; Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net
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