Yen strengthens against dollar after G-7 statement

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Associated Press

Posted on February 12, 2013 at 1:00 PM

Updated Tuesday, Feb 12 at 1:02 PM

NEW YORK (AP) — The yen is gaining strength against the dollar after the Group of Seven countries said that volatile currency movements could hurt the global economy.

In midday Tuesday trading, the U.S. dollar dropped to 93.17 yen, down from 93.70 yen late Monday. The yen had been trading at its lowest level compared to the U.S. dollar since 2010.

Finance officials from the G-7 countries, which include the U.S. and Japan, said their economic policies should be "oriented towards meeting domestic objectives and not towards setting specific exchange rates."

Traders took the statement to be singling out Japan's yen, which has slumped since Prime Minister Shinzo Abe took office. Abe has vowed to fight deflation.

The euro also gained strength against the U.S. dollar, edging up to $1.3460 versus $1.3389 Monday.

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