Investors are driven towards safe haven assets as stock markets continue to slump, with oil price hovering towards its lows. The EUR and the JPY are seen benefiting amid global growth turbulence. EUR/USD touched a three month high, while USD/JPY trades below 115 levels following the Bank of Japan's surprise to adopt negative interest rate.

The central banks are seen concerned over the safe haven status of their currencies as weaker currencies are in demand to lower the negative effects for the economy amid uncertain market conditions.  In this case it is applicable to the ECB and the BoJ as inflation levels and economy growth in both the economies are under immense pressure.

The BoJ has assumed further monetary easing measures by adopting negative deposit rates at the end of January, while the ECB has announced further monetary policy measures for March. As exchange rate measure is considered as an effective monetary policy measure, the central banks are likely to weaken its currency further.