Euro Approaches Record High Against Yen Before Inflation Report
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The euro approached a record high against the yen on speculation a report yesterday will show inflation in the dozen countries that share the currency remained faster in July than the European Central Bank’s target.
The report may reinforce speculation the ECB will raise interest rates twice more this year, while minutes released Tuesday showed the Bank of Japan is likely to lift rates at a slower pace.The euro may rise against the dollar as investors cut bets on the Federal Reserve lifting borrowing costs again after slower-than-expected American inflation figures yesterday.
“The ECB is now the most active large central bank,” a currency strategist at National Australia Bank Ltd. in Sydney, John Kyriakopoulos, said.”Any data that affect that outlook, like today’s inflation, will support the euro.”
The euro bought 148.66 yen as of 10:40 a.m. in Tokyo, from 148.76 late in New York yesterday, when it reached 148.90, the highest since it was introduced in January 1999. It was at $1.2856 against the dollar, from $1.2839 yesterday.
Europe’s common currency may move to 150 yen in the next few days and to $1.30 against the dollar in the next few months, said Mr. Kyriakopoulos.
The ECB’s benchmark rate is 3% after four increases since December.
