Falling yen not an issue at G20 meeting

DESPITE the yen's sharp and continuing drop against the dollar and other major currencies, the issue sparked little comment or controversy among advanced or emerging economies at the Group of Twenty (G20) finance ministers and central bank governors meeting in Cairns, Australia at the weekend.

This opens the way for further falls in the Japanese currency in coming days, dealers say. The yen could fall below 110 to the US dollar quite soon, former senior official at the Bank of Japan, Rei Masunaga, told the Business Times. Japan's former "Mr Yen," Eisuke Sakakibara, has predicted similar falls.

The strong focus at the Cairns meeting was on finding ways to restore global economic growth by further fiscal or monetary moves or by accelerating structural economic adjustment, while currency issues received little attention despite widening gaps in exchange rates.