The Japanese yen reached another record low level against the Eurozone currency today as the ECB prepares to raise rates in July, while Japanese spendings may go abroad to seek the higher yielding assets.
The yen continued to fall today after its fastest fall against euro since June 9 after the Federal Reserve left the funds target rate unchanged at 2 percent yesterday, strengthening the euros positions on Forex. ECB is expected to raise the interest rate next month, while the BoJ is keeping rates low at 0.5 percent.
Strategists at the investment banks believe that the outflow of the investment from Japan will be a major driver for the currencys loss in the short-term future. Meanwhile upward trend on the ECB rates may push euro to the new records.
EUR/JPY climbed up today from 168.96 to 169.06 as of 8:50 GMT with daily maximum at 169.46 — the highest level for this currency pair since the adoption of the European currency. GBP/USD also grew up today — it went up from 212.93 to 213.50.
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