Forex
AUD/JPY Firms Ahead of BoJ Rate Hike Expectations
The AUD/JPY exchange rate has remained relatively stable near 110.10 as investors await the upcoming Bank of Japan (BoJ) meeting.
The BoJ is expected to raise its policy interest rate to 1.25% on Thursday, a level last seen in April 1995, in an effort to address upside risks to prices and achieve its 2% inflation objective.
Market participants will be closely watching comments from BoJ Governor Kazuo Ueda for indications of the central bank's projected trajectory of future rate increases.
The Reserve Bank of Australia (RBA) is also expected to increase the Official Cash Rate (OCR) to 4.60% at its next meeting, with a nearly 76% probability assigned by RBA Rate Tracker.