GUATEMALA CITY -- The weakening of the U.S. dollar accelerated after finance ministers from the Group of Seven issued a communique calling for market-oriented international exchange rates. Soon afterward, the Japanese yen set a two-year high against the American currency.
Of course, Japanese exporters complain that the rising value of the yen will erode their profits. This has brought considerable political pressure to support government intervention in forex markets to avoid further advances in the value of the yen.
In turn, officials in Tokyo have been jawboning the markets and implying that they will continue to weigh in to thwart foreign-exchange speculation and stem appreciation.