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Euro hits record high against yen in Asia trade

Euro hits record high against yen in Asia trade

The euro hit a record high of 163.31 yen yesterday amid expectations the European Central Bank will continue to tighten monetary policy while the Bank of Japan moves slowly on raising interest rates.
Traders said euro-buying is likely to continue, and propelling the European currency even higher in the near term.
"Demand for the euro (versus the yen) is still solid amid expectations of a robust economy and high yields in Europe," said Tokyo Forex and Ueda Harlow senior manager Masanobu Ishikawa.
"It's inevitable for the euro to keep rising against the yen," he said. "Unlike the ECB, the Bank of Japan probably won't lift interest rates soon given recent economic data such as the consumer price index."
Since the start of the year, the European currency has risen about 4 percent against the yen on expectations European interest rates will rise faster than Japanese rates. The ECB's key interest rate stands at 3.75 percent, while Japan's is at 0.5 percent.
At 2:50 p.m., the euro settled at 163.23 yen, down slightly from 163.27 yen on Friday. Japanese markets were closed Monday, a national holiday.
The dollar was also little changed against the yen amid thin trading over Japan's Golden Week holidays. The dollar was trading at 119.57 yen late yesterday, up from 119.56 yen late Thursday in New York.


Updated : 2021-07-29 08:44 GMT+08:00