Aussie Dollar Climbs Towards Decades-Long High Against Yen

The Australian dollar is climbing towards its highest level in decades against the Japanese yen.

Last July, the US and Japanese governments intervened to prop up the yen, which had hit its lowest point since 1986.

However, this effort only lasted a short while, and the yen has been steadily sinking again.

Japan's economy relies heavily on imports, particularly for raw materials and energy. A weak yen makes these imports more expensive, putting pressure on living costs.

The US government is also concerned about a weakening yen, as Japan holds over $1.14 trillion in US government debt. If the yen continues to decline, the Bank of Japan may need to sell US bonds, which could increase interest rates for the US government and consumers.