The yen fell against the euro and dollar on Friday on expectations that the Group of 20 at its meeting this weekend will avoid targeting Japan over policies that have weakened the yen. The currency market was thrown into turmoil this week after the Group of 7 issued a joint statement stating that domestic economic policies must not be used to target currencies.
But the yen on Friday tumbled on a draft communique prepared for Group of 20 finance leaders, which omits part of the G7 statement declaring fiscal and monetary policy may only be used for domestic economic aims, a G20 delegate said on Friday. The euro last traded up 0.8 percent against the yen at 125.08 yen, after earlier falling to 122.87 yen, its lowest level since January 30. It hit a 34-month high of around 127.71 last week. The euro last traded flat at $1.3358. The dollar last traded at 93.64 yen, up 0.9 percent, after earlier hitting a one-week low of 92.21 yen. It had set a 33-month high of 94.465 on Monday and solid chart support was expected at 92.00 yen.