EUR/JPY Falls Amid Expectations for BoJ Rate Hike
The Euro (EUR) fell by 0.25% on Thursday against the Japanese Yen (JPY), ending its three-day winning streak, as investors anticipate another interest rate hike from the Bank of Japan (BoJ) on Friday.
Expectations of monetary tightening in Japan remain a key focus for markets, with many anticipating a 25 basis point rate increase at the BoJ's meeting.
Japanese officials, however, maintained a cautious tone ahead of the decision. Economy Minister Minoru Kiuchi stated that the government aims to balance economic strength with fiscal sustainability, but declined to comment on the interest rate outlook.
Meanwhile, Finance Minister Satsuki Katayama emphasized the importance of maintaining market confidence and achieving the central bank's 2% inflation target in a stable manner.