Yen Goes Down as G20 Meeting Reduces Need for Safety

The Japanese yen weakened today as investors preferred higher-yielding currencies to safer ones after the meeting of Group of Twenty reinforced the hopes for a resolution of the European debt crisis.

The leaders of G20 approved parts of the plan presented by the European Union policy makers. The plan includes writing off parts of the Greek debt, reinforcing the European banks and boosting the European Financial Stability Facility. The deadline for completing the rescue plans for the EU was set on October 23, when the summit of the EU chiefs is scheduled. The Stoxx Europe 600 Index gained 1.4 percent.

USD/JPY rose from 77.06 to 77.24 today as of 10:36 GMT. EUR/JPY traded near 106.70 after opening at 106.86 and touching the intraday high of 107.67.

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