The Australian dollar is set to strengthen against the Japanese yen, with analysts saying it could move back toward a multi-decade high as forces supporting yen weakness ease. Bloomberg and the Financial Post both report that strategists see room for the Aussie to recover toward levels last seen decades earlier.
The expected move is tied to changes in Japan’s currency policy and Australia’s monetary stance. Both outlets cite the fading impact of Tokyo’s currency intervention, which previously weighed on the yen, as one factor. They also point to the Reserve Bank of Australia’s relatively hawkish tone, which they say supports expectations for stronger interest rates in Australia compared with Japan.
