Euro Hits Near 10-Month Low Against Yen Amid ECB and BoJ Expectations

The Euro has been underperforming against the Japanese Yen, falling to near its almost 10-month low of 177.85 during the European trading session on Wednesday.

The cross remains under pressure due to the continued outperformance by the Japanese currency, with some analysts expecting further monetary tightening in the months ahead.

Rabobank notes that market chatter around a potential 50 basis points interest rate hike by the Bank of Japan (BoJ) has intensified, although the BoJ itself is expected to raise interest rates next week.

The European Central Bank's (ECB) monetary policy announcement on Thursday will be closely watched, with investors anticipating a hike in policy rates and looking for guidance on the ECB's terminal rate.