AUD/JPY Slumps as BoJ Hawkishness Boosts Yen

The Australian dollar (AUD) has weakened against the Japanese yen (JPY), trading at around 110.75 on Tuesday's early European session.

This move is attributed to hawkish comments from Bank of Japan (BoJ) policymakers, which have solidified expectations that the central bank will raise interest rates this month.

BoJ board member Hajime Takata stated last week that the central bank could take a more aggressive approach than anticipated, with a 25-basis-point hike 'not necessarily set in stone,' and back-to-back rate hikes a possibility.

The upcoming policy meeting on September 17-18 is expected to see the BoJ raise its benchmark interest rate by 25 basis points to 1.25%.