Japanese yen plunges to four-year low. G7 unlikely to act.

[hubag bohol]

Japanese yen's plunge vs. the dollar makes its exports cheaper and its companies more competitive. G7 finance ministers will focus on the Japanese yen at talks in the UK this weekend. 


By Martin Benedyk and Pan Pylas, Associated Press / May 10, 2013



A screen indicates the current exchange rate of the US dollar against Japanese yen behind the both countries' flags at a foreign exchange company in Tokyo, Friday, May 10, 2013. The yen is at a four-year low against the dollar. Itsuo Inouye/AP


AYLESBURY, ENGLAND
Financial leaders from the world's top seven developed economies are gathering in the U.K. to discuss how to shore up the global recovery just as the stimulus measures of one its members, Japan, has caused its currency to take a dramatic slide.

[hubag bohol]

Supporting the global economy and the role of central banks are set to be the key points of this weekend's discussions among financial ministers and officials from the Group of Seven countries â€" the U.S., Germany, Japan, the U.K, Italy, France and Canada. But attention will also turn the financial markets, which on Friday were dominated by developments surrounding the yen and the Bank of Japan's super-aggressive monetary policy.

The dollar breached the 100 yen mark late Thursday â€" the first time in a little over four years. Over the past few months, the yen has dropped sharply as the new government in Japan tries to bring an end to the country's two-decade stagnation.