Yen struggles before BOJ decision; hawkish ECB, soft US data dent dollar

The Japanese yen is languishing near 15-year lows against the euro and seven-month troughs against the dollar, with markets expecting the Bank of Japan to hold off on monetary policy changes for the time being. Meanwhile, the euro is set for its best week since November after the European Central Bank (ECB) signalled further rate hikes, raising borrowing costs to a 22-year high. The US dollar has fallen broadly due to a run of soft economic data, with traders rationalising that interest rates in the US needn’t increase too much more.