Japanese Yen Surges Against Euro Amid BoJ Hike Expectations

The Japanese Yen has strengthened against the Euro due to growing expectations of a Bank of Japan rate hike.

Investors now expect a 25-basis-point interest rate increase at the next BoJ meeting on September 17-18, with some analysts predicting a larger move to combat inflation and rising bond yields.

The prospect of higher interest rates in Japan has intensified downward pressure on EUR/JPY, which fell by 1.11% on Monday.

German Industrial Production declined by 1.1% MoM in July, following stagnation in June, while the Eurozone Sentix Investor Confidence Index rose to 5.1 in September from 0.9 in August.