Reported 4 months ago
The yen is sliding against the euro faster than the dollar amid speculation that the European Central Bank will take a gradual approach to cutting interest rates due to elevated inflation. The Japanese currency has weakened by 1.3% against the euro this month, nearing its previous record low. Despite the Bank of Japan ending negative interest rates, the rate gap with other central banks remains significant. Disagreements among ECB members on rate cuts and expectations of gradual changes are influencing investor sentiment. The risk of yen intervention by Japanese authorities has slowed the currency's decline, and recent low volatility is encouraging carry trades, where investors borrow yen to invest in higher-yielding assets abroad.
Source: YAHOO