Central banks should be careful what they say about the future if they want flexibility to set monetary policy.
The euro fell against the dollar after European Central Bank President Mario Draghi said policy makers are ready to cut interest rates again if needed after reducing them to a record low last week.
Nobody asked the German people if they wanted the euro. Now, almost 15 years after Europe introduced its common currency, a new political party has emerged to campaign for a return to the deutsche mark.
The weakening yen has turned Japan’s annual Golden Week, a string of springtime holidays, into a boon for domestic tourism.
The Chinese yuan is set to strengthen as rising inflows of speculative capital add to pressure on the currency, the head of a Ministry of Commerce research institute said.
Hong Kong Monetary Authority can manage inflation risks caused by an appreciating yuan and is committed to its currency’s dollar peg in place since 1983, Chief Executive Norman Chan said.
Global finance chiefs gave Japan leeway to reflate its stagnant economy by indicating its fresh round of monetary stimulus doesn’t represent an explicit campaign to devalue the yen.
Group of 20 finance chiefs pledged to stay alert to any fallout from easy monetary policies even as they backed the Bank of Japan’s plan to buy more than 7 trillion yen ($70 billion) a month of bonds.
Asian stocks rose, paring this week’s losses, as Taiwan Semiconductor Manufacturing Co. led technology shares higher and mining companies rebounded.
Bank of Japan Governor Haruhiko Kuroda won international endorsement of his stepped-up stimulus push, saying it emboldened him to press ahead with his campaign to defeat 15 years of deflation.