AUD Jumps as BoJ Hikes Rates to Highest Level Since 1995

The Australian Dollar strengthened against the Japanese Yen on Friday after the Bank of Japan raised its short-term policy rate to 1.25%, the highest level since 1995.

The BoJ's decision, which passed with a 7-2 majority, led to selling pressure in the Yen against the AUD, causing the currency pair to rise by 1.05% to around 112.05.

RBA Governor Michele Bullock noted that risks to the outlook had been tilted to the upside at the August Board meeting, while Deputy Governor Andrew Hauser emphasized the RBA's commitment to achieving its inflation target.