- EUR/JPY stabilizes after the BOJ announced that it will maintain the objective of the interest rate without changes in the range of 0.4%- 0.5% in June.
- Japan’s prime minister, ishiba, and President Trump met in Canada on Monday, but failed to reach an agreement on tariffs.
- The EUR receives support from optimism after the report that Iran requested a high immediate fire.
EUR/JPY continues its winning streak that began on June 5, quoting around 167.40 during the Asian hours on Tuesday. The torque has marked 167.59, the highest level since July 2024. The currency pair remains firm after the Bank of Japan (BOJ) decided to maintain the objective of the short-term interest rate without changes in the range of 0.4%- 0.5% in June.
The BOJ has extended the pause in its rate increase cycle during the third consecutive month in June, maintaining the policy rate at the highest level in 17 years. Markets expect the BOJ to postpone the increase in rates to the first quarter of 2025 due to uncertainty about US tariff policy.
The Japanese Yen (JPY) faced challenges after Japanese Prime Minister Shigeru Ihiba and US President Donald Trump met outside the G7 summit in Canada on Monday, but failed to conclude a commercial agreement.
Japan hoped to close an agreement to avoid US tariffs of 25% on cars and 24% on other imports, which are pause until July 9. The Japanese prime minister ishiba said: “We have been exploring the possibility of an agreement until the end, but there are still points where our opinions are still divided.” He stressed the importance of protecting the automotive sector of Japan, calling it an “important national interest.”
The EUR/JPY crossing received support from an improved risk feeling amid the decrease in concerns about the climbing between Israel and Iran. Iran asked many countries, including Oman, Catar and Saudi Arabia, to urge the US president Donald Trump to use his influence on Israel for a high immediate fire, according to Reuters.
Economic indicator
BOJ interest rates
He Bank of Japan Set the interbank interest rate. This rate affects a range of interest rates set by commercial banks, construction societies and other institutions towards their own savers and borrowers. It also affects the price of financial assets, such as bonds, actions and exchange rates, which affect the consumer and the demand for businesses in a variety of forms. If the Bank of Japan has a firm perspective with respect to the Japanese economy and increases the current interest rate, this is upward to the YEN. Instead, a slight perspective that leads to the bank to reduce or maintain current types will be bassist for the YEN.
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Last publication:
Mar Jun 17, 2025 03:31
Frequency:
Irregular
Current:
0.5%
Dear:
0.5%
Previous:
0.5%
Fountain:
Bank of Japan
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
