Euro at highest since 2008 on yen, markets nervous about Tokyo stepping in
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The yen hit fresh multi-year lows against the dollar and the euro on Tuesday, with the euro reaching its highest level since 2008 at ¥165.62. Investors are on heightened intervention watch ahead of the Bank of Japan's (BOJ) meeting this week. The dollar also rose to its highest level since 1990 against the yen, nearing the trigger level for intervention by Japanese authorities. Japanese Finance Minister Shunichi Suzuki has warned of the chance of intervention. However, doubts remain about whether Tokyo will act so close to the BOJ's policy meeting. The euro also gained against the dollar and the pound, while the pound dropped to a five-month low against the dollar. Investors are more confident in Bank of England rate cuts due to comments from policy makers about inflation slowing. The US Federal Reserve is seen as one of the last major central banks to cut rates. Investors are currently pricing in a 46% chance of the Fed's first rate cut starting in September. The strength of the US economy will be assessed this week with first-quarter GDP data and the PCE index, the Fed's preferred measure of inflation.

#Yen #Euro #Dollar #BankOfJapan #Intervention #BankOfEngland #FederalReserve #Inflation #Gdp #PceIndex

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