The Australian dollar headed for a weekly drop versus currencies of the U.S. and Japan on concern China’s economy is slowing and before Crimea votes this weekend on whether to leave Ukraine to join Russia.
The world’s major economies pledged to maintain generally accommodative policies and pay heed to the international repercussions of their actions as Federal Reserve Chair Janet Yellen won praise for helping smooth emerging-market concerns.
The Group of 20 nations said monetary policy should remain accommodative for now in many advanced economies and pledged a coordinated push to boost growth by more than $2 trillion over the next five years.
Developing nations have been forced to sell Treasuries and use the proceeds to arrest domestic currency weakness, driving a drop in their custody holdings at the Federal Reserve, according to Westpac Banking Corp.
To foreign-exchange strategists, 2014 was to be the year the dollar broke free from the Federal Reserve’s currency-depressing policies and appreciated the most since the global financial crisis. Then came the snow.