Investing.com - The euro touched fresh two-year lows against the broadly higher yen on Tuesday as the as the European Central Bank’s bond buying stimulus program continued to pressure the single currency lower.
EUR/JPY hit lows of 126.10, the weakest since mid-June 2013 and was last at 126.37.
The single currency has weakened broadly so far this year after the ECB unveiled a trillion-euro quantitative easing program in January. The bank started asset purchases last month, pushing euro area bond yields to new lows.
Sentiment on the single currency was also hit as uncertainty over Greece’s bailout negotiations with its creditors continued to weigh.
The yen received a boost after the Bank of Japan indicated Monday that the benefits of its stimulus program were broadening, easing speculation over the prospect of more stimulus in the short term.
The euro was at one-month lows against the dollar, with EUR/USD sliding 0.19% to 1.0546.
Demand for the dollar was underpinned by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.29% to 119.77.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 99.75.