To: John Pitera who wrote (7533 ) 2/2/2007 5:27:19 PM From: John Pitera Read Replies (2) | Respond to Yen trade-weighted value hits 21-year low in Jan currency's broad weakness that has become the centre of attention for officials from major economies before next week's Group of Seven meeting. lowest level since September 1985 , the time of the Plaza Accord, when the Group of Five nations agreed to devalue the dollar against the yen and German mark to help reverse a gaping U.S. trade deficit. long slide has increasingly drawn the ire of European officials , who have said they plan to make its weakness a topic at the G7 meeting of finance ministers and central bankers in Germany next week. has failed to see consumer prices rise much , with the core consumer price index gaining just 0.1 percent in December from a year earlier. prompted many domestic households to seek better returns in foreign assets, while a variety of investors have borrowed the low-yielding yen and use the funds to buy higher-yielding currencies in the carry trade. real effective exchange rate as a gauge of the yen, saying Japan's decade-long bout of deflation exaggerates the yen's weakness on a REER basis.
