Azerbaijan, Baku, March. 17 / Trend /
Group of Seven nations finance chiefs will hold talks on financial markets and Japan's economy tomorrow, after the March 11 earthquake triggered a drop in global stocks and drove the nation's currency to a post World War II high, Bloomberg reported.
According to the finance Minister Yoshihiko Noda, the discussions will encompass currencies and Japan will brief officials on the damage to the nation's economy.
The yen's climb today is driven by speculation and the government is monitoring its moves, Economy Minister Kaoru Yosano said.
Japanese stocks pared losses and the yen weakened as the announcement raised the prospect of coordinated global action to prevent the disaster from crippling the world's third-largest economy. The yen earlier strengthened to 76.36 to the dollar and bond risk soared as workers raced to avert a meltdown at the Fukushima Dai-Ichi nuclear plant north of Tokyo.
The yen traded at 79.01 per dollar as of 4:23 p.m. in Tokyo. The Nikkei 225 Stock Average fell 1.4 percent to close at 8,962.67.
Lagarde's Plan
French Finance Minister Christine Lagarde said yesterday she wanted to hold G-7 talks on the financial response to Japan's earthquake, including possibly buying Japanese bonds. The G-7 is made up of the U.S., Germany, France, Canada, Italy, the U.K. and Japan.
Should the G-7 agree that yen moves are too volatile, "that may lead to joint intervention by Japan, the U.S. and Europe to sell yen for dollars and euros," Yasunari Ueno, chief market economist Mizuho Securities Co. in Tokyo, wrote in a report published today