G20 vows to avoid currency war

A single country can win for a while the devaluing commercial advantages. This operation makes imports more expensive and favors the local domestic products. On the other hand, exporters get higher profits when they change back to local currency the international revenue. But this brings prosperity measure only temporary, illusory, when trading partners respond with custom barriers or similar policies to depreciate the currency

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The yen rallied on Tuesday, reversing the previous day’s late selloff against the dollar and euro after an official with the G7 said it is worried about excess moves in the Japanese currency.

World stock markets edged higher and the Dow Industrials climbed within striking distance of an all-time high as investors looked ahead to President Barack Obama’s State of the Union address on Tuesday evening.