Euro rises against Japanese Yen as latter underperforms across board
The Euro (EUR) is 0.2% at around 180.78 against the Japanese Yen (JPY) during the European trading session on Tuesday. The cross gains as the Japanese currency underperforms its currency peers.
The Euro (EUR) gained 0.2% to approximately 180.78 against the Japanese Yen (JPY) during the European trading session on Tuesday. The rise occurred as the Japanese currency underperformed compared to its peers. The Japanese Yen has been under pressure since the Bank of Japan's (BoJ) monetary policy announcement last week. The BoJ increased interest rates by 25 basis points to 1.25%, the highest level in 31 years.
Two BoJ board members opposed the hike. The BoJ has indicated a potential for further rate hikes, expressing concern that recent Yen depreciation could lead to higher inflation. Analysts at MUFG suggest that the BoJ may intervene to support the currency, particularly ahead of a three-day holiday period where liquidity for USD/JPY is expected to be lower.
Meanwhile, a significant depreciation in the Japanese Yen over the past few days has raised concerns about potential intervention by the BoJ.
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