The Japanese yen pushed to its three-week highs on Tuesday against the common currency of the European Union as speculation intensified about the European Central Bank driving forward as soon as this week with increased intervention, Bloomberg reports.
The yen gained against 15 of 16 monetary units before the speech of President Mario Draghi with the European Central Bank in Frankfurt, Germany. A policy decision by the body Draghi leads could come as soon as Thursday.
"Most people are focusing on the ECB meeting, given the weakness in recent data coming out from Europe, particularly the low inflation print," senior currency strategist Khoon Goh with Australia & New Zealand Banking Group Ltd. in Singapore told Bloomberg on Tuesday. "The market is ascribing a chance of a potential rate cut from the ECB, so that's seen the euro come off."
The yen rose about 0.5 percent against the euro after having pushed to its top value since October 10 earlier during the Tuesday trade session.
The ECB is poised to announce a resumption of monetary stimulus and slashed interest rates, according to Reuters.
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