April 19 Friday 11:30 GMT
The euro made modest gains to 1.3098 from 1.3058 against the dollar (+40 points) in European trading as the Japanese Yen fell against the major currencies after the comments from Japan’s Finance Minister Taro Aso following the G20 meeting in Washington. The buoyancy of the euro is mainly driven by the euro-yen’s rise of 152 points to 130.02 from 128.50. European stocks rose.
Minister Aso said that Japan’s stimulus policies that have weakened the yen to have been accepted at the G20 meeting yesterday. He explained that the easing policy is aimed for price stability and to defeat deflation and not to use the yen as a price devaluation tool to gain advantage for Japanese exports.
The ECB said that 10.94 billion euros will be repaid this coming Wednesday by 29 banks that participated in the ECB’s two LTRO’s, three-year long term refinancing operations where banks repay a certain amount each week. About 263.6 billion have already been repaid from the 1.018 trillion borrowed via the two LTRO operations, which settled in December 2011 and March 2012.
Cable rose 80 points to 1.5368 against the dollar from the well supported level of 1.5288. The broad weakness of the Japanese Yen pushed sterling higher after Japan’s Finance Minister Taro Aso’s comment that Japan’s stimulus measures to weaken the yen were not aimed at gaining a competitive price devaluation against any single nation.
Sterling-yen made extended gains in Europe and rose 200 points to test 152.50 from the 150.50 low
The Bank of Japan meets on April 26 after pledging to double the monetary base in two years through expanded purchases of government bonds to end 15 years of deflation.