Euro Surges Against Yen on Strong German Data and BoJ Uncertainty

The Euro has strengthened against the Japanese Yen due to robust German business sentiment data and uncertainty surrounding further monetary tightening by the Bank of Japan.

Germany's IFO Business Climate Index rose to 89.9 in September, exceeding market consensus of 89, while the Current Assessment Index improved to 89.5 from 88.5 and the Expectations Index climbed to 90.4 from 89.

The Bank of Japan raised its policy rate by 25 basis points to 1.25% last week, but BoJ Governor Kazuo Ueda's comments following the decision fell short of increasingly hawkish market expectations.

Japanese government bond yields have moved higher, with the 10-year JGB yield rising by nearly 9 basis points to 3.071%, its highest level in 30 years, after US Treasury yields advanced earlier.