The Euro gains 0.1% against the Yen amid broader underperformance despite Japan’s denial of encouraging low interest rates.
The Euro rose 0.1% to near 185.20 against the Japanese Yen in European trading on Wednesday. The cross extended gains as the Yen weakened across major currencies, despite Japan’s Growth Strategy Minister Minoru Kiuichi denying reports of government pressure for low interest rates.
The Yen was the weakest against the New Zealand Dollar, reflecting its broader decline. Japan’s government reiterated it is not easing fiscal discipline, while Bank of Japan member Toichiro Asada indicated support for rate hikes if inflation becomes demand-driven.
Markets reacted to the clarification, though the Yen’s underperformance persisted amid mixed signals on Japan’s monetary policy outlook.