AUD/JPY Slumps on Intervention Fears and Rising Hike Odds
The Australian Dollar (AUD) declined against the Japanese Yen (JPY) on Friday morning in Europe, trading near 112.55 as the pair maintained a bearish short-term tone.
Market analysts have assigned a 76% probability of a Bank of Japan rate hike in September, significantly higher than the 24% forecasted on July 30.
DBS Group Research noted that the JPY's undervaluation has narrowed after Japan's second coordinated FX intervention with the US this year.