By Stanley White
Nov. 14 (Bloomberg) -- The yen rose against the dollar and the euro on speculation a Group of 20 nations summit will fail to reach a consensus on how to kick start the global economy.
The yen also advanced against the Australian and New Zealand dollars as uncertainty about the outcome of the meeting prompted traders to pare purchases of higher-yielding assets. The dollar may fall for a second day against the euro before a report that may show U.S. retail sales declined by the most since the 2001 recession.
``I'm looking for the yen to strengthen against the dollar,'' said Takeshi Tokita, vice president of foreign- exchange sales in Tokyo at Mizuho Corporate Bank, a unit of Japan's second-largest publicly traded lender. ``No one is sure what will come out of the G-20. It's likely that the U.S. and Europe won't see eye to eye on many of the problems the global economy is facing.''
The yen rose to 97.10 per dollar as of 9:53 a.m. in Tokyo from 97.68 late yesterday in New York. Against the euro, it was at 123.99 from 124.78. The euro was little changed at $1.2772. The yen may fall to 95.50 today, Tokita said.
Heads of state from the G-20 nations gather in Washington today for two days of talks on how to tackle the global economic crisis sparked by a seizure in credit markets and losses on mortgage derivatives.
U.S. President George W. Bush yesterday urged leaders of the world's biggest economies not to abandon free-market capitalism. G-20 leaders including Australian Prime Minister Kevin Rudd and French President Nicolas Sarkozy have used the crisis to demand greater government control of markets and to attack the U.S. for failing to rein in investors and speculators.
Under debate are proposals ranging from curbing executive pay and restraining hedge funds to raising capital requirements for banks and subjecting credit-rating companies to stiffer oversight.
To contact the reporter on this story: Stanley White in Tokyo at swhite28@bloomberg.net.
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