US Treasury Secretary Mr John Snow said yesterday he expected the Group of Seven finance ministers, due to meet this weekend in Washington, to repeat an earlier warning of "excess volatility" in currency markets.
The statement, first uttered at the last G7 meeting in February, was then viewed as a warning to Asian central banks, which, for more than a year, have intervened aggressively in foreign exchange markets.
Japan's and China's central banks have been particularly keen on such dollar purchases, which they used to weaken their own currencies and give exports a boost.
But this intervention has often led to wild swings in the value of the US dollar.
Mr Snow said the sentiment that this volatility was excessive was felt by the entire G7, which also includes Japan, Canada, France, Germany, Italy and Britain.
"I wouldn't expect any alteration in that language," in the next G7 statement, Mr Snow said.
He singled out European economies as the missing ingredient of global growth, saying the United States' solid clip of expansion suggested it was doing its bit.
Asked about what could be done to stem a ballooning US trade deficit, Mr Snow offered a two-pronged solution - better growth abroad and increased savings at home. - (Reuters)
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