Euro Weakens Against JPY Amid BoJ Rate Hike Expectations

The Euro (EUR) has weakened against the Japanese Yen (JPY) to near 185.45 amid firm expectations that the Bank of Japan (BoJ) will raise interest rates in September.

A Reuters poll found that 57% of economists expect a 25 basis point hike, up from just 5% in July. Former BoJ board member Seiji Adachi also suggested that the central bank may raise its benchmark rate as early as September and again in January.

Hawkish BoJ prospects are backed by upside inflation risks, with Japan's Economy Minister Minoru Kiuchi stating that he expects consumer prices to gradually rise amid the Middle East situation.