Foreign-exchange rates and high oil prices are expected to be major topics at a meeting of Group of 20 finance ministers and central bankers in Berlin this weekend, Finance Minister Sadakazu Tanigaki said Tuesday.
"Foreign-exchange rates have moved considerably since the last G7 meeting (in October). There is no doubt this will be a focus of discussion" at the two days of talks starting Saturday, Tanigaki told reporters, alluding to the dollar's recent seven-month lows against the yen and all-time lows against the euro.
"High oil prices, although they have eased (from record-high levels last month), are also expected to draw attention in the debate on the world economic outlook," he said.
Tanigaki reiterated that foreign-exchange rates should move in line with fundamentals of the economies involved, and that sharp movements disregarding fundamentals are undesirable for the global economy, a view he said is shared by Japan's G7 partners.
The Bank of Japan plans to send one of the two deputy governors to the Berlin meeting, a BOJ source said.
Finance Ministry officials have said recent declines in the dollar are "a little too fast," signaling readiness to step into currency markets if foreign-exchange movements deviate from fundamentals.
Euro zone officials have also expressed concern over a recent surge in the single European currency to record highs, with European Central Bank President Jean-Claude Trichet calling the euro's upswing against the dollar "brutal."
The G20 comprises the G7 — Britain, Canada, France, Germany, Italy, Japan and the United States — the European Union and 12 emerging-market economies including China, Brazil and India.
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