Forex - Yen gained against most currencies after G7
The US Dollar dropped to fresh lows on Monday while the Yen surged after a meeting of industrialized powers ended with no words of support for the Dollar, offering a green light to speculative sellers. The Dollar was also pressured by Friday’s 2.6% slide in Wall Street S&P Index and increasing speculation the Federal Reserve would cut interest rates next week; G7 leaders agreed Chinese Yuan was undervalued and they want the Yuan to appreciate faster, which means that the US dollar will depreciate faster, as China leads a generalized Asian appreciation; Futures Markets pointed US yields had fal en sharply as the Fed funds futures market priced in around a 90% chance of another 25 basis point rate cut at the central bank’s two-day policy meeting on Oct. 30/31.