EUR/JPY fell to around 183.55 on Wednesday, down 0.17%, as investors assess the impact of improving economic sentiment in Germany on the growing risk of intervention in the Japanese currency market.
Germany’s IFO business climate index rose to 85.6 in June, in line with expectations, from a revised 85 in May. The current assessment index rose to 87, above forecasts of 86.4, while the expectations index improved to 84.1 from the previously revised level of 83.9, although it fell miniature of the consensus mark of 85. The data confirms a gradual improvement in business confidence in the euro zone’s largest economy.
The euro (EUR) also supports the still cautious stance of the European Central Bank (ECB). ECB chief economist Philip Lane said on Tuesday that uncertainty remains elevated despite improving peace prospects in the Middle East and that inflation could remain above the 2% target until the first half of 2027. His comments reinforce expectations that tight monetary policy could remain in place for longer.
However, cross-profits remain narrow by developments in Japan. Traders remain on high alert after a discussion between Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent fueled speculation about potential coordination on currency markets. Japan Chief Cabinet Secretary Minoru Kihara also reiterated that authorities will take appropriate action if excessive currency movements occur.
According to Takeru Yamamoto, a trader at Sumitomo Mitsui Trust Bank in New York, the discussions between the United States (US) and Japan may have been intended to signal that the threshold for intervention remains relatively low. Meanwhile, a summary of the Bank of Japan’s (BoJ) opinion from its June meeting showed that a majority of board members support raising interest rates, arguing that inflation risks are increasing and core inflation is moving sustainably towards the 2% target.
OCBC analysts Sim Moh Siong and Christopher Wong noted that a return of USD/JPY above 160 remains narrow by intervention risks, while MUFG’s Lee Hardman believes that fears of official action and the prospect of a faster pace of monetary tightening from the BoJ are preventing another pointed depreciation of the Japanese yen (JPY). This combination continues to limit EUR/JPY growth despite a relatively favorable environment for the euro.
Price in euro today
The table below shows the current percentage change of the euro (EUR) against the main listed currencies. The euro was strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.31% | 0.22% | 0.10% | 0.16% | 0.41% | 0.55% | 0.31% | |
| EUR | -0.31% | -0.09% | -0.20% | -0.16% | 0.09% | 0.21% | -0.00% | |
| GBP | -0.22% | 0.09% | -0.13% | -0.09% | 0.18% | 0.29% | 0.08% | |
| JPY | -0.10% | 0.20% | 0.13% | 0.05% | 0.29% | 0.40% | 0.19% | |
| BOOR | -0.16% | 0.16% | 0.09% | -0.05% | 0.25% | 0.34% | 0.16% | |
| AUD | -0.41% | -0.09% | -0.18% | -0.29% | -0.25% | 0.11% | -0.11% | |
| NZD | -0.55% | -0.21% | -0.29% | -0.40% | -0.34% | -0.11% | -0.21% | |
| CHF | -0.31% | 0.00% | -0.08% | -0.19% | -0.16% | 0.11% | 0.21% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select Euro from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
