AUD Weakens vs JPY as BoJ Hike Bets Build

The Australian Dollar (AUD) weakened against the Japanese Yen (JPY) by 0.27% on Wednesday, trading around 110.80 at the time of writing.

This decline reflects the strengthening of the JPY, which is being supported by growing expectations of monetary tightening in Japan.

The Reserve Bank of Australia's Deputy Governor Andrew Hauser called for further action to contain inflation, fueling speculation about additional interest rate hikes.

Markets are increasingly expecting the Bank of Japan (BoJ) to raise interest rates at its upcoming meeting, with some analysts suggesting a 50bps hike, which would be the first since 1989.