BRUSSELS (dpa-AFX) - The Japanese yen strengthened against other major currencies in the European session on Tuesday, as European shares traded lower as trade tensions persisted, and investors looked ahead to the European Central Bank's policy meeting later in the week.
Meanwhile, the Organization for Economic Co-operation and Development slashed its global growth forecast to 2.9 percent from its earlier forecast of 3.1 percent for 2025.
The Paris-based firm said the outlook across the globe has become challenging with rising trade barriers and policy uncertainty, which is weighing on consumer confidence and blocking investments.
A support for the safe-haven JPY is the ongoing geopolitical concerns brought on by the extended Russia-Ukraine war and growing trade tensions.
In other economic news, data from the Bank of Japan showed that the monetary base in Japan was down 3.4 percent on year in May, coming in at 656.0.12 trillion yen. That beat forecasts for a decline of 4.2 percent following the upwardly revised 4.8 percent contraction in April.
In the European trading, the yen rose to a 4-day high of 162.80 against the euro and an 8-day high of 192.73 against the pound, from early lows of 163.71 and 193.81, respectively. The yen may test resistance around 161.00 against the euro and 190.00 against the pound.
Against the U.S. dollar and the Swiss franc, the yen advanced to 142.61 and 174.32 from early lows of 143.27 and 175.05, respectively. The yen is likely to find resistance around 161.00 against the euro, 190.00 against the pound, 138.00 against the greenback and 170.00 against the franc.
Looking ahead, U.S. Redbook report, U.S. factory orders for April and U.S. RCM/TIPP economic optimism index for June are slated for release in the New York session.
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