The Euro rises against the Japanese Yen despite fears of Japan’s inflation overshooting BoJ’s 2% target.
The BoJ is expected to raise its growth forecasts for the current year.
Market experts believe the ECB will deliver one more interest rate hike this year.
The Euro (EUR) is higher by 0.36% to near 185.25 against the Japanese Yen (JPY) during the European trading session on Monday. The Japanese Yen underperforms across the board despite hopes that Japan’s inflation would remain above the Bank of Japan’s (BoJ) 2% target for a longer period.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the New Zealand Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | -0.24% | -0.04% | 0.23% | -0.15% | 0.12% | -0.37% | -0.14% | |
EUR | 0.24% | 0.21% | 0.45% | 0.09% | 0.37% | -0.10% | 0.11% | |
GBP | 0.04% | -0.21% | 0.26% | -0.12% | 0.18% | -0.29% | -0.06% | |
JPY | -0.23% | -0.45% | -0.26% | -0.36% | -0.09% | -0.54% | -0.30% | |
CAD | 0.15% | -0.09% | 0.12% | 0.36% | 0.28% | -0.16% | 0.06% | |
AUD | -0.12% | -0.37% | -0.18% | 0.09% | -0.28% | -0.43% | -0.19% | |
NZD | 0.37% | 0.10% | 0.29% | 0.54% | 0.16% | 0.43% | 0.23% | |
CHF | 0.14% | -0.11% | 0.06% | 0.30% | -0.06% | 0.19% | -0.23% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Last week, a Reuters report showed that the BoJ will keep focus on the risk of inflation overshooting the central bank’s target in its quarterly report due in July. The report also showed that the central bank may revise its economic growth forecast higher for the current year.
The scenario of higher inflationary pressures and upward economic growth revision would likely boost expectations that the BoJ’s monetary policy path will remain in the upside.
Meanwhile, the Euro trades higher amid growing expectations that the European Central Bank (ECB) will deliver another interest rate hike this year. Rising energy prices due to renewed aggression between the United States (US) and Iran have de-anchored global inflation expectations again.
Analysts at MUFC expect the ECB to deliver another 25 basis points (bps) rate hike in the September meeting.
Meanwhile, investors await fresh commentary from ECB officials regarding the Eurozone inflation outlook after headlines that the Strait of Hormuz, a critical chokepoint to almost one-fifth of global energy supply, is closed again.
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