The yen rose the most in almost a month versus the euro on speculation Bank of Japan stimulus will be sufficient to boost the economy while the European Central Bank will expand currency-debasing measures to revive growth.
Japan’s currency strengthened against all of its 16 major peers, with analysts surveyed by Bloomberg News predicting the BOJ will keep stimulus unchanged when policy makers meet June 12-13. Its biggest gains came versus the euro as data pointed to subdued inflation and production in the 18-nation currency bloc. Australia’s dollar touched a three-week high.
“The economic data has been mixed but clearly not to the level that would warrant further action at this month’s meeting” of the BOJ, said Peter Rosenstreich, chief foreign-exchange analyst at Swissquote Bank SA in Geneva. “Cyclical stimulus seems to be working while, structurally, sentiment has shifted. This might indicate less artificial support from the BOJ, and that should underpin the yen.”
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