Yen edges up against euro, dollar as rate outlooks diverge

The yen made broad gains on Thursday as Japan looks on track to keep raising interest rates while others cut, with the European Central Bank seen certain to deliver the latest in a series of policy easings later in the day. The yen was the notable mover in currency markets, with the dollar down 0.6% to 154.35 yen and the euro falling a similar amount to 160.62 yen. Markets are more than fully priced for the ECB to trim rates by 25 basis points to 2.75% later on Thursday, with even a small chance of a 50 basis points reduction given the weakness of the euro zone economy.