How Much is Euro to Yen?

How Much is Euro to Yen?

Since the beginning of 2022, the price of FXY has fallen 15.9% from around $81 to $69.

As a result of the Japanese Yen depreciating compared with the US Dollar. Affected by the Fed raising interest rate and the surge in oil prices, the yen began in March a round of rapid depreciation that lasted for nine consecutive weeks. Bank of Japan contributed to the trend by announcing a pledge to keep interest rates at present or lower levels. 

The euro has seen shocks in late February.

FXE price fell below $101 in March compared to the February average $105. The euro continued to decline steadily in April driven by the same causes of the yen depreciation. The FXE price hit the lowest point around $96.07 in mid-May before the euro showed signs of bottoming out and rebounding in the background that ECB released the signal of raising interest rate. 

On a pure value basis, the EUR-USD and USD-JPY are inversely correlated and the correlation is about -0.42 presently. They had been positively correlated for the whole February. The correlation decreased steadily from -0.55 to -0.79 in April and bottomed at the end of May near -0.90. With respect to the weekly time frame, the correlation fluctuated around -0.90 in the first half of 2022. 

FXE daily return regressed on FXY return gives beta 0.36, which is lower by eight basis points than those of past years, and R-squared is also lower. 

Volatility increased after the Fed hiked the benchmark interest rate by 0.75% on June 15. The BoJ meeting on June 17 again confirmed the determination of Japan’s central bank to commit its easing policy. There is little possibility that Japan’s monetary policy would change for the rest of 2022.

Written by Shangyu Li

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How Much is Euro to Yen?