Euro Stabilizes Against Yen as ECB-BoJ Rate Hikes Loom

The Japanese Yen has seen its value stabilize against the Euro in recent days, following joint intervention from the US and Japan to curb excessive volatility.

Both the European Central Bank (ECB) and the Bank of Japan (BoJ) are expected to raise interest rates in September, with analysts at ING predicting a 75% chance that the BoJ will hike by 25 basis points. According to Reuters, three sources familiar with the matter confirm that the BoJ is set to raise interest rates as soon as September and potentially more aggressively thereafter.

The ECB is also expected to increase its policy rate in September, as inflation risks remain tilted to the upside, according to analysts at HSBC.