The Euro falls 0.5% against the Yen amid unconfirmed reports of Japan stepping into currency markets to support its currency.
The Euro slumped nearly 0.5% to around 184.00 against the Japanese Yen in European trading on Thursday. The move follows a sharp, sudden rally in the Yen, widely suspected to be the result of Japanese authorities intervening in currency markets to curb weakness. No official confirmation has been issued yet.
Japanese officials have repeatedly warned of potential intervention in recent days to address excessive volatility. Finance Minister Satsuki Katayama stated earlier this week that the government would respond appropriately to currency moves as needed, though she avoided specifying any target levels. The Yen has shown strength across major pairs, particularly against the Australian Dollar.
The Euro’s decline comes as traders scale back expectations for further European Central Bank rate hikes after Eurozone inflation cooled. The currency has shown mixed performance against other major peers this session.