Australian Dollar rises against Japanese Yen as BOJ raises policy rate to the highest since 1995
The AUD/JPY cross rises to around 112.05 during the Asian trading hours on Friday. The Japanese Yen (JPY) attracts some sellers against the Australian Dollar (AUD) following the Bank of Japan (BoJ) interest rate decision.
The Australian Dollar (AUD) surged against the Japanese Yen (JPY) following the Bank of Japan (BoJ) decision to raise its short-term interest rate by 25 basis points to 1.25%, from 1.00%, during its September policy meeting. The AUD/JPY exchange rate rose to approximately 112.05 in Asian trading hours. Traders are closely monitoring Bank of Japan Governor Kazuo Ueda's press conference, which may provide insights into the timing and pace of further hikes.
The BoJ expressed concerns about risks, including Middle East developments, AI demand, FX volatility, and their impact on the economy and prices. BoJ officials stated there is a risk that underlying inflation might overshoot the 2% target. Analysts suggest that the BoJ is likely to adopt a more aggressive approach to policy normalization than previously anticipated, which could further strengthen the Yen.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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