The Japanese yen continued its sharp decline today, Tuesday, to reach its lowest level in 15 years against the euro, as the repercussions of the Bank of Japan’s insistence on monetary easing continued to reverberate days after the decision.
Meanwhile, the Australian dollar jumped to a one-week high after the Reserve Bank of Australia (RBA) surprisingly raised interest rates and signaled that more monetary tightening may come next.
The bank raised the interest rate to 3.85% and said some further tightening may be needed to ensure that inflation returns to the target level within a reasonable time frame.
The Australian currency rose 1% to just under 67 US cents for the first time since April 25, after being stuck at nearly 66 cents for most of last week.
The euro advanced 0.24% to 151.31 yen, the highest level since September 2008.
The dollar rose 0.21% to 137.74 yen for the first time since March 8. And if it exceeds 137.90, this will be its highest level this year.
And the euro increased 0.1% against the dollar to $ 1.0985, but it is still near its lowest levels during the past week.
