The Japanese yen continued its sharp decline on Tuesday, reaching its lowest level in 15 years against the euro, amid ongoing repercussions from the Bank of Japan's insistence on monetary easing days after its decision. Meanwhile, the Australian dollar surged to its highest level in a week after the Reserve Bank of Australia unexpectedly raised interest rates and indicated that more monetary tightening may be needed in the near future.
The central bank raised the interest rate to 3.85% and stated that additional tightening may be necessary to ensure inflation returns to the target range within a reasonable timeframe. The Australian currency increased by one percent to just below 67 cents against the US dollar for the first time since April 25, having hovered around 66 cents for most of the previous week.
The euro rose by 0.24% to 151.31 yen, marking its highest level since September 2008. The dollar increased by 0.21% to record 137.74 yen for the first time since March 8, and if it surpasses the 137.90 level, it will be the highest level this year. The euro also gained 0.1% against the dollar to reach 1.0985 dollars, yet it remains close to its lowest levels from the previous week.
