The Euro gains against the Yen after the ECB maintains a hawkish stance on interest rates, reinforcing policy divergence.
The Euro extended gains against the Japanese Yen, trading near 184.90 in early European trading. The move follows hawkish signals from the European Central Bank, which reinforced expectations for prolonged higher interest rates to combat inflation.
Prior to the session, the EUR/JPY pair hovered around 184.50, with markets pricing in a 25-basis-point ECB rate hike by year-end. The Bank of Japan, in contrast, has maintained its ultra-loose monetary policy, widening the yield gap between the two currencies.
No immediate market reaction was reported beyond the modest uptick in the cross rate.