Dollar, euro surge in Asian trade

TOKYO: The dollar traded close to the 100-yen level in Asia on Monday after G20 finance leaders gave a cautious thumbs up to Tokyo's efforts to stoke growth with huge monetary easing.

The greenback fetched 99.85 yen in Tokyo morning trade, strengthening from 99.52 yen in New York late Friday, while the euro also gained at 130.46 yen from 129.94 yen in US trading. The dollar last hit 100 yen in April 2009.

The single European currency also fetched $1.3067 from $1.3057 in New York.

Investors were keeping a close eye on dollar-yen trading as the US unit flirts with a four-year high.

"The G20 effectively gave the green light for further yen weakness by supporting the aggressive easing by the Bank of Japan," National Australia Bank said in a note.

"However the G20 did add that it would like to see Japan also detail the structural reforms it can take to further boost growth."

The finance chiefs of the G20, after a meeting in Washington, gave a cautious endorsement of Japan's huge monetary stimulus programme, agreeing it was necessary to boost the country's stagnant economy, which has suffered from years of falling prices that have crimped spending and new investment.

Japan's latest policy actions "are intended to stop deflation and support domestic demand", they said in a statement.