Yen weakness likely not on agenda at G7 meeting

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The government of Japan might face informal pressure to address the problem of the weakening yen at a meeting of the Group of Seven meeting later this month in Essen, Germany, but divisions among other members of the G7 will likely prevent an official inquiry into causes of and solutions to the yens problems. The US will not be inclined to take an official look at the yen because it is more worried about the Chinese renminbi. And while European officials have said that they feel that the yen should reflect Japans economic recovery, the differences between US and European concerns will probably mean that the issue will not be taken up officially at the meeting.Additionally, Japans vice–minister of finance said at a press conference on Thursday that his government understands that the yen will not be a major topic at the meeting and will not be mentioned in the communiqu at the conclusion of the meeting.A member of Japans fiscal and economic policy council also weighed in on the issue, saying that while Europe is frustrated because of the yen/euro rate, there are not any large trade issues between Japan and Europe. That, coupled with the US preoccupation with the renminbi, has convinced Japan that the yen will not come up in Essen.