Euro Slips vs Japanese Yen on BoJ Hike Expectations

The Euro has weakened against the Japanese Yen in early European trading on Wednesday, with the EUR/JPY cross down 0.22% at around 185.45.

This move is attributed to firm expectations that the Bank of Japan (BoJ) will raise interest rates by 25 basis points to 1.25% in September, according to a Reuters poll conducted between August 17-24.

A total of 57% of economists surveyed predicted an interest rate hike, marking a significant shift from July's poll when just 5% expected a rise.

Former BoJ board member Seiji Adachi has also weighed in on the matter, arguing that the central bank will likely raise its benchmark rate as early as September, followed by another potential increase in January.