Yen firms, euro retreats before ECB meeting

London

A MODERATELY risk-averse tone dominated currency markets on Wednesday, with the safe-haven yen broadly higher amid anxiety about a slowdown in China.

The low-yielding euro, which tends to do well during times of financial market uncertainty, however, underperformed and was weaker before a European Central Bank (ECB) meeting on Thursday. The ECB is expected to take rates deeper into negative territory and announce more asset purchases in a bid to boost inflation.