The Euro climbs against the Japanese Yen amid broader Yen underperformance and ECB rate hike expectations.
The Euro gained 0.36% to 185.25 against the Japanese Yen in European trading on Monday, as the Yen weakened across major currencies. The Yen’s decline occurred despite expectations that Japan’s inflation would remain above the Bank of Japan’s 2% target for an extended period.
Last week, reports indicated the BoJ may revise its economic growth forecast upward for the current year while monitoring inflation overshooting risks. The central bank’s quarterly report, due in July, could reinforce expectations of a hawkish monetary policy path. Meanwhile, the Euro strengthened on growing bets that the European Central Bank will raise interest rates again this year.
The Yen was the weakest against the New Zealand Dollar, reflecting broader underperformance amid diverging monetary policy expectations between Japan and other major economies.