Institution: G7 statement adjustment may weigh on the US dollar

Chris Turner, director of foreign exchange strategy at Dutch international group, said that the wording used to describe foreign exchange policies at this week's G7 meeting is unlikely to change. However, if adjustments are made, even slight ones could trigger strong reactions and weigh on the US dollar. In an email report, Turner wrote: "In the past, especially in the 1990s and 2000s, such joint statements have been an important tool for expressing changes in exchange rate policy... Could the US Treasury Department possibly try to urge other G7 members to adjust the wording of the foreign exchange paragraphs, thereby to some extent encouraging orderly appreciation of other currencies against the US dollar? Or with some adjustments to the expression, do they expect currency trends to more reflect external balance conditions?"