Australian Dollar slips against Japanese Yen as BoJ rate hike bets grow
AUD/JPY declines 0.27% on Wednesday and trades around 110.80 at the time of writing.
The Australian Dollar (AUD) experienced a decline against the Japanese Yen (JPY) on Wednesday, trading around 110.80, as expectations of monetary tightening in Japan grew stronger. Despite encouraging inflation data from China, which reported a 0.8% YoY increase in Consumer Price Index (CPI) in August, the AUD failed to sustain any significant gains.
The Japanese Yen benefitted from the growing anticipation of interest rate hikes by the Bank of Japan (BoJ) and Prime Minister Sanae Takaichi's firm stance against a weak Yen. Rabobank analysts noted that a 50 basis points hike by the BoJ was under speculation, marking the first such move since 1989. The US Treasury Secretary, Scott Bessent, warned investors against betting against the Japanese currency, stating his "pretty good insight" into the Bank of Japan's decisions and currency interventions.
While the AUD/USD steadied near mid-0.7100s on Friday, weaker Chinese PPI data had fueled rate-hike bets and boosted the US Dollar, impacting the AUD/USD pair.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
