Euro rises and Yen falls ahead of a series of central bank meetings

The euro clung to gains on Tuesday after hawkish comments from policymakers at the European Central Bank, while the yen remained near a ten-month low ahead of an interest rate decision from the Bank of Japan later this week.

Currency movements were limited in early Asian trading, as markets await a series of central bank meetings this week, led by the Federal Reserve with interest in Asia on the Bank of Japan.

The euro achieved slight gains to trade at $1.0695, after rising 0.3 percent in the previous session, with European Central Bank officials hinting at the possibility of further hikes in interest rates, statements that boosted government bond yields in the euro zone.

In Asia, the yen fell slightly to 147.64 yen to the dollar and remained stuck near the lowest level in ten months recorded last week at 147.95 to the dollar.

Against the US currency, the Australian dollar rose 0.12 percent to 0.6445 US dollars, while the New Zealand dollar advanced 0.11 percent to 0.5924 US dollars.

The dollar index fell 0.04 percent to 105.04.

The British pound rose 0.04 percent to $1.2390 ahead of the Bank of England’s interest rate decision, also scheduled to be issued this week.