Euro weakens versus JPY amid ECB tightening signals and Middle‑East oil jitters

EUR/JPY was trading near 185.80 on Thursday, essentially flat for the day after touching a one‑month peak earlier in the week. The exchange rate slipped modestly as the Japanese yen regained some strength, even though expectations of further policy tightening by the European Central Bank continue to anchor the euro.

Market participants are maintaining a cautious stance, as fresh hostilities involving Iran have driven oil prices higher and rekindled inflation worries. Heightened risk aversion is supporting the yen, but the negative impact of elevated energy costs on Japan’s economy is capping the currency’s gains.

In the eurozone, several ECB officials have recently signaled a willingness to adopt additional restrictive measures if inflation pressures intensify. Austrian Central Bank Governor and ECB Governing Council member Martin Kocher said the bank stands “ready to act” should second‑round inflation effects emerge, while Bundesbank President and council member Joachim Nagel emphasized the need to “act decisively” if required.

These remarks come against a backdrop where a Reuters poll shows most economists anticipate the ECB will keep its deposit rate unchanged at 2.25 % at its July meeting, though roughly 70 % foresee at least one further hike before year‑end, likely in September. Rabobank aligns with this baseline view, noting that the renewed Middle‑East escalation has raised upside inflation risks but still does not point to a July increase. ING also sees July tightening as a possibility, though September remains the more probable timing.

In Japan, concerns about the government’s plan to bring part of the Government Pension Investment Fund’s overseas assets back home are continuing to weigh on the yen. Investors remain doubtful about how quickly the repatriation can be executed, limiting its supportive effect on the currency. Finance Minister Satsuki Katayama reiterated on Thursday that authorities stand prepared to intervene in forex markets if needed, but declined to comment on specific exchange‑rate levels.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound.

USDEURGBPJPYCADAUDNZDCHFUSD0.28%0.59%0.18%0.12%0.14%0.23%0.51%EUR-0.28%0.31%-0.09%-0.16%-0.07%-0.03%0.23%GBP-0.59%-0.31%-0.39%-0.45%-0.38%-0.33%-0.05%JPY-0.18%0.09%0.39%-0.09%0.02%0.05%0.33%CAD-0.12%0.16%0.45%0.09%0.10%0.14%0.41%AUD-0.14%0.07%0.38%-0.02%-0.10%0.06%0.31%NZD-0.23%0.03%0.33%-0.05%-0.14%-0.06%0.26%CHF-0.51%-0.23%0.05%-0.33%-0.41%-0.31%-0.26%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Source link