Reuters
The yen hit multi-year lows against the dollar and the euro on Tuesday, keeping investors on heightened intervention watch ahead of this week's Bank of Japan meeting, while dovish policy maker comments left sterling near its weakest in months. The euro reached 165.62 yen, its highest since 2008, after data showed business activity in the euro zone expanded at its fastest pace in nearly a year, primarily due to a recovery in services. "That's a combination of the stronger euro today ... and the yen continuing to weaken on the expectation that the BOJ will be very gradual in tightening policy," said Lee Hardman, senior currency strategist at MUFG.