Investors pile into short-Yen positions amid persistent rate differentials, despite Tokyo’s warnings on currency volatility.
The Australian Dollar holds near 113.10 against the Japanese Yen in European trading, supported by sustained carry-trade demand. The JPY remains under pressure as investors exploit the wide interest rate gap between Japan and other major economies, fueling short positions.
Japan’s Finance Minister Satsuki Katayama reiterated readiness to counter excessive currency moves but avoided specifying intervention thresholds. The AUD’s gains are capped by uncertainty over US-Iran tensions, though mediators announced a 60-day roadmap for peace talks, easing some risk aversion.
The People’s Bank of China left its one-year and five-year Loan Prime Rates unchanged at 3.00% and 3.50%, respectively, adding to the backdrop of stable regional monetary policy.