BERLIN (AP) — German Chancellor Angela Merkel is urging the world's leading economies to stick to an agreement and not deliberately weaken their currencies.
Merkel said in a speech Wednesday that the weekend pledge by Group of 20 finance ministers to refrain from competitive devaluation was an important signal — "but all participants have to keep to it," German news agency dpa reported.
Investors and politicians have recently voiced unease about the Japanese yen trading near a three-year low. If too many countries try to weaken their currencies for economic gain — sparking a so-called "currency war" — the fragile global recovery could be derailed.
Merkel stressed that Germany opposes "engaging in active exchange rate policy," adding that the euro's current value, lying between $1.30 and $1.40, is normal.