G-7 Said to Have Held Call Wednesday on Europe Debt Crisis, U.S. Stalemate
Finance officials from Group of Seven nations held a conference call yesterday to discuss the European sovereign debt crisis and the U.S. political stalemate over raising the borrowing ceiling, according to a G-7 official.
The calls were between senior officials rather than finance ministers, said the official, who spoke on condition of anonymity. No ministerial meeting is planned, the official said.
Japan followed Switzerland today in seeking to stem appreciating exchange rates that threatened to damage export competitiveness by selling yen and pledging to inject 10 trillion yen ($126 billion) into the economy.
The action reflected concern that the U.S. will return to recession, triggering a further round of asset purchases by the Federal Reserve, as well as over the widening in Europe’s debt crisis following a sell-off in Spanish and Italian bonds this week.
The concerns have prompted investors to seek havens in the currencies of Japan and Switzerland, which both enjoy current- account surpluses, and those of emerging markets with faster growth rates.
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