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Euro gains against Japanese Yen on more ECB interest rate hike hopes

  • The Euro gains against the Japanese Yen as market experts see the ECB delivering more interest rate hikes this year.
  • On Thursday, the ECB hiked its key interest rates by 25 bps.
  • The BoJ is expected to raise interest rates by 25 bps to 1% on Tuesday.

The Euro (EUR) trades higher 0.12% higher to near 185.45 against the Japanese Yen (JPY) during the European trading session on Friday. The cross gains as the Euro (EUR) outperforms its major currency peers, except the US Dollar (USD), amid hopes that the European Central Bank (ECB) will deliver one interest rate hike this year to counter de-anchored inflation expectations in the wake of the Middle East crisis.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.16%0.21%0.24%0.18%0.36%0.38%0.28%
EUR-0.16%0.04%0.09%0.03%0.20%0.21%0.11%
GBP-0.21%-0.04%0.06%-0.01%0.14%0.18%0.08%
JPY-0.24%-0.09%-0.06%-0.07%0.10%0.12%0.01%
CAD-0.18%-0.03%0.01%0.07%0.17%0.18%0.10%
AUD-0.36%-0.20%-0.14%-0.10%-0.17%0.00%-0.09%
NZD-0.38%-0.21%-0.18%-0.12%-0.18%-0.01%-0.09%
CHF-0.28%-0.11%-0.08%-0.01%-0.10%0.09%0.09%

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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Analysts at Deutsche Bank expect the ECB to deliver one more interest rate hike in September after a 25 basis points (bps) increase on Thursday. In the policy announcement, the ECB raised its key borrowing rates by quarter-to-a-percent, as expected, and warned that short-term inflation expectations have risen.

ECB President Christine Lagarde stated that the central bank will remain vigilant to inflation risks. “Will monitor size, persistence of energy price increase," Lagarde said.

Meanwhile, the Japanese Yen trades lower against its major peers, except antipodeans, amid caution ahead of the Bank of Japan’s (BoJ) monetary policy decision on Tuesday. According to the latest Reuters poll, the BoJ is expected to raise interest rates by 25 basis points (bps) to 1%.

The monetary policy meeting will be conducted in the absence of the BoJ Governor Kazuo Ueda, as he was hospitalized on June 10.

Economic Indicator

BoJ Interest Rate Decision

The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.

Read more.

Next release: Tue Jun 16, 2026 03:00

Frequency: Irregular

Consensus: -

Previous: 0.75%

Source: Bank of Japan

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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