The Australian Dollar strengthened against the Japanese Yen on Monday, supported by active carry-trade strategies. According to FX Street, the AUD/JPY pair was trading around 113.10 during European hours.
The Japanese Yen continued to weaken amid widespread carry-trade activity, which has been putting downward pressure on the currency. FX Street reported that this trend is contributing to the Yen's ongoing loss of ground.
For Japanese investors, these movements highlight the impact of global interest rate differentials on FX markets, especially as carry trades remain a key driver influencing the Yen's performance against higher-yielding currencies like the Australian Dollar.