Back to today’s briefing

Story perspectives

Yen Hits Historic Low as Eurozone Inflation Soars

10/7/2025

24 3 Full Breakdown

Summary

Story summary

The Japanese yen fell to 175.43 per euro, a historic low amid prolonged easing and 3.3% inflation.
The European Central Bank (ECB) raised rates to curb inflation, now 5.3% in the eurozone, versus Japan.
Investors saw eurozone sentiment improve in October to 94.6, even as tensions over Ukraine and U.S.-China relations persist.

History

Historical Context

Japan's economic stagnation began with the asset bubble collapse in 1990, leading to the "Lost Decades," where GDP growth averaged just 1.14% from 1991 to 2003. The yen's decline to 175.43 per euro today reflects ongoing challenges, as the Bank of Japan maintains low interest rates amid global inflation pressures, exacerbated by geopolitical tensions like the Ukraine conflict and U.S.-China relations.

1 of 2

Story summary

The Japanese yen fell to 175.43 per euro, a historic low amid prolonged easing and 3.3% inflation.
The European Central Bank (ECB) raised rates to curb inflation, now 5.3% in the eurozone, versus Japan.
Investors saw eurozone sentiment improve in October to 94.6, even as tensions over Ukraine and U.S.-China relations persist.

1 / 2