Money dealers trade under an electric foreign exchange quotation board at a Tokyo foreign exchange market on October 25, 2010. – AFP Photo

TOKYO: The dollar hit a fresh 15-year low of 80.66 yen in Tokyo trading hours Monday as the greenback resumed its slide, amid continued expectations of more easing measures in the United States.

Investors resumed selling the greenback after G20 economies agreed to avoid tit-for-tat currency devaluations but did not set specific targets at a two-day meeting, dealers said.

The dollar has slumped on expectations that the US central bank will print more money to inject cash into its banking system and stimulate growth, diluting the value of the currency.

The greenback fell from its previous 15-year low of 80.75 yen struck in New York in mid October, before rebounding slightly to 80.78 yen in Tokyo trade, down from 81.34 in New York on Friday.

The euro fetched 1.4050 dollars, up from 1.3949. It bought 113.50 yen from 113.24 Friday.

Finance ministers and central bank governors meeting over the weekend in the South Korean city of Gyeongju agreed on a framework to tackle large current account surpluses and reduce global trade imbalances, but shied away from specific targets.

After all-night talks among their senior officials, G20 finance ministers forged an agreement in South Korea to “refrain from competitive devaluation of currencies” and aim for “more market-determined exchange rate systems”.

Jittery financial markets were looking for a strong stand from G20 members against beggar-thy-neighbour currency policies, in the leadup to a November 11-12 summit in Seoul.

Analysts said the lack of concrete action from the G20 meant that markets would now move their attention to the US Federal Reserve, to see if the central bank will pump in more money to shore up the world’s biggest economy.

Japan has reduced its official interest rate to almost zero and last month intervened in the foreign exchange market for the first time in six years to sell the yen in an effort to safeguard an export reliant recovery.

Despite repeated threats from Tokyo that it is ready to intervene again, the Japanese currency’s ascent has continued. – AFP