LONDON: The yen headed for the longest weekly winning streak in more than six years against the US dollar on speculation Prime Minister Junichiro Koizumi's administration would not try to reverse its advance.
The yen, up 4.5% in the past month, may prolong its rally should finance ministers and central bankers from the Group of 20 largest economies fail to reach a consensus on stemming the US dollar's decline, said Ian Stannard, a currency strategist at BNP Paribas SA here. Japan spent a record 32.9 trillion yen on currency sales in the year ended March 31.
“We're still some way away from levels which may start to concern the Japanese monetary authorities,'' said Stannard.
“Everything points to the current move is within the acceptable range for the Japanese authorities,'' he said. “Around 101 yen would be where they start to get concerned.''
Against the US dollar, the yen rose to 103.80 at 10:12am here, from 104.18 late yesterday in New York, according to electronic currency dealing system EBS.
The yen is up for the eighth consecutive week, the longest such rally since at least 1998, according to records compiled by Bloomberg.
German Economy Minister Wolfgang Clement urged the European Central Bank and US and Asian policymakers to take action against any sudden drop in the greenback, calling the currency's depreciation a risk to economic growth.
“It is the task of all big economies'' to prevent “sudden changes'' in currencies, Clement said in an interview in Bangkok yesterday. – Bloomberg