AUD/JPY Surges Near 111.00 Ahead of BoJ Rate Decision

The Australian Dollar (AUD) has gained ground against the Japanese Yen (JPY), reaching near the 111.00 level in early European trading on Thursday.

Elevated energy prices due to the ongoing conflict in the Middle East are weighing on the JPY, as Japan is an oil-dependent economy.

The Bank of Japan's (BoJ) upcoming monetary policy meeting on Friday will be closely watched for clues on interest rate hikes, with analysts expecting a 25bps increase to 1.25%.

Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management, noted that markets are divided on the impact of hawkish BoJ communication, which could either lower or lift bond yields.