Euro gains against Japanese Yen on US-Iran deal, eyes on BoJ policy
- Euro jumps to near 185.85 against the Japanese Yen due to the risk-on mood on the US-Iran deal finalization.
- ECB officials warn of near-term inflation risks even as Hormuz reopens.
- The BoJ is expected to raise interest rates by 25 bps to 1% on Tuesday.
The Euro (EUR) outperforms its major currency peers during the European trading session on Monday, trading 0.26% higher to near 185.85 against the Japanese Yen (JPY). The major currency strengthens as the finalization of a peace framework between the United States (US) and Iran, which will be signed on Friday, has resulted in a broader risk rally in global markets.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.34% | -0.18% | -0.08% | -0.13% | -0.37% | -0.24% | -0.46% | |
| EUR | 0.34% | 0.15% | 0.28% | 0.22% | -0.04% | 0.11% | -0.14% | |
| GBP | 0.18% | -0.15% | 0.13% | 0.07% | -0.20% | -0.02% | -0.30% | |
| JPY | 0.08% | -0.28% | -0.13% | -0.05% | -0.31% | -0.20% | -0.42% | |
| CAD | 0.13% | -0.22% | -0.07% | 0.05% | -0.24% | -0.13% | -0.37% | |
| AUD | 0.37% | 0.04% | 0.20% | 0.31% | 0.24% | 0.15% | -0.08% | |
| NZD | 0.24% | -0.11% | 0.02% | 0.20% | 0.13% | -0.15% | -0.26% | |
| CHF | 0.46% | 0.14% | 0.30% | 0.42% | 0.37% | 0.08% | 0.26% |
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).
S&P 500 futures are up almost 1.3% in the European trade, reflecting strong demand for riskier assets.
On Sunday, both the US and Iran confirmed reaching a deal, and President Donald Trump announced the reopening of the Strait of Hormuz along with the removal of the US blockade on Iranian seaports.
The US-Iran deal finalization has resulted in a sharp decline in oil prices, which surged significantly in Middle East war times and remained a key drag on currencies from economies that are highly dependent on oil imports for meeting their energy needs.
Higher energy prices also prompted inflationary pressures in the Eurozone economy and forced European Central Bank (ECB) officials to hike key interest rates by 25 basis points (bps) in its monetary policy meeting on Thursday.
Meanwhile, ECB officials have warned of near-term inflation risks despite the US-Iran deal finalization. ECB Governing Council Member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trade that there seems to be no relief from high inflation in the foreseeable future, as it will take months for oil supply to return to normal.”
On the Tokyo front, investors await the Bank of Japan’s (BoJ) monetary policy announcement on Tuesday, in which it is expected to raise interest rates by 25 basis points (bps) to 1%.
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: 1%
Previous: 0.75%
Source: Bank of Japan
Author
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.
