What is the sense of discomfort in making exchange rate appreciation a topic at the G20?
This month, as the US economic indicators announced so far have all been solid, US long-term interest rates have risen, and with the tensions in the Middle East intensifying, there has been active dollar buying during times of crisis against major and emerging market currencies, leading to a broad-based dollar strength. However, the objection to this dollar strength is only fromG7, and for now there is no widespread view that dollar strength will become a burden on the global economy.4/18, the upcomingG20 will address Japan’s call to correct the dollar overvaluation, with a sense of discomfort that needs explanation.
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