The euro increased the gains it has recently made against the yen in Wednesday trading, setting a new record in the process.

In the early morning London trading, the euro rose to a record high of 167.24 yen, from an opening position of around 167.04.

The euro is gaining strength from speculation that the European Central Bank (ECB) is going to keep borrowing costs high.

 ECB President Jean-Claude Trichet is due to announce today (Thursday) whether the bank will raise its base rate.

According to economists surveyed by Bloomberg News, the ECB is likely to freeze current interest rates until September, then increase them.

Similar speculation has boosted the fortunes of the pound, as the analysts almost unanimously predicted that interest rates will rise in the UK following today's meeting of the Bank of England's monetary policy committee.