Forex Flash: G7 said monetary policy should use domestic instruments – Nomura

Nomura Stategist Yujiro Goto notes that the G7 finance ministers and central bank governors released a statement about the foreign exchange market ahead of the G20 meeting this week.

He comments that G7 nations agreed that fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and will not target exchange rates. He adds that this idea is what Japanese policy makers have been reiterating recently to deflect potential criticism on recent JPY weakness from foreign counterparts.