Corporate foreign exchange news

Dollar spot prices fall after G7 statement

Monday, 05 October 2009 11:18:08 GMT

The US dollar fell during early trading on Monday (October 5th) after the resolution of G7 talks in Istanbul over the weekend.
In a statement, finance chiefs from the US, UK, Germany, France, Italy, Japan and Canada avoided taking a firm stance to prevent the decline in the dollar, despite falling 14 per cent against a basket of currencies tracked by Bloomberg since March.
"The relatively weak statement leaves the door open to further dollar weakness over coming weeks," said Mitul Kotecha, head of global foreign exchange strategy in Hong Kong at Calyon.
Ahead of the European market's opening this morning, the dollar had fallen against both the euro and the yen, with the latter finding support from a statement from Japanese finance minister Hirohisa Fujii insisting that the country would take a strong line against biased currency fluctuations.
Bloomberg reports that this is a marked change of direction for the finance minister, who stated his preference for a weaker yen when taking office in September.ADNFCR-2522-ID-19391917-ADNFCR
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