EUR/JPY Plummets as Japan's Economy Prepares for Rate Hikes

The EUR/JPY currency pair is trading in negative territory around 181.20 during early European trading hours on Monday.

The Japanese Yen (JPY) has strengthened against the Euro (EUR) as the Bank of Japan (BoJ) is expected to raise interest rates this month, according to Japanese Prime Minister Sanae Takaichi's economic adviser, Takuji Aida. He stated that after the September rate hike, the BoJ will likely follow up with another increase by January next year.

A Reuters poll published on Thursday suggests the European Central Bank (ECB) is also set to raise interest rates at its upcoming policy meeting, which would bring its deposit rate by a quarter-point to 2.50%.