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Weekly Forex News February 17th 2013 FCTOFX: Much volatility was seen in the Japanese yen last week on talk of a so called "currency war" and on concern that the expansive policies that drove down the the currency would be criticized by the G7 and G20 leaders. The G7 statement released in the early part of the week and subsequent comments from officials confused the markets. But in the end there was some steep selloff in yen late Friday on news that the depreciation of the Japanese currency won't be singled out. Indeed, Japan escaped from criticism by the G20 statement which ended with a pledge to refrain from competitive currency devaluation. The yen's downtrend is now set to resume this week as this uncertainty is cleared. Meanwhile the Euro extended its correction last week as data showed a deepening recession in the Eurozone and as traders lightened up positions ahead of elections in Italy. The Sterling also weakened broadly after a dovish Bank of England quarterly inflation report. The New Zealand dollar was surprisingly the strongest currency last week after some positive economic data.