AUD/USD Plunge Sparks JPY Surge Amid Suspected Japanese Market Intervention

The AUD/JPY pair declined sharply on Thursday amid a broad rally of the Japanese Yen (JPY), sparking speculation that Japanese authorities stepped in to intervene and support the local currency following USD/JPY’s ascent toward a 40-year high earlier in the month.

As of the latest update, AUD/JPY is trading near 111.70, having dropped approximately 1.75% for the session to its lowest level since July 3.

USD/JPY tumbled by nearly 480 pips, breaching the psychological threshold of 160. Tokyo has issued no official confirmation, though Japanese officials have consistently maintained their readiness to combat excessive foreign exchange fluctuations.

Separately, Reuters reported that Japanese authorities are evaluating a modified approach involving unannounced interventions.

Market participants are now turning their focus toward the Bank of Japan’s (BoJ) policy decision on Friday, alongside the Tokyo Consumer Price Index (CPI) and the Unemployment Rate. The BoJ is widely anticipated to hold its policy rate steady at 1.00%.

The Australian Dollar (AUD) was already facing downward pressure due to weaker-than-forecast Australian inflation figures released earlier in the week. Consumer prices declined 0.1% month-over-month in June, missing expectations for a 0.2% increase, following a 0.7% drop in May. Year-on-year inflation moderated to 3.8% from 4.0%.

The subdued inflation data diminished expectations for another rate hike by the Reserve Bank of Australia (RBA) in August.

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHFUSD-0.32%-0.43%-2.58%-0.23%-0.76%-1.15%-0.82%EUR0.32%-0.12%-2.27% 0.08%-0.46%-0.85%-0.50%GBP0.43%0.12%-2.12%0.20%-0.33%-0.72%-0.35%JPY2.58%2.27%2.12%2.41%1 .87%1.44%1.84%CAD0.23%-0.08%-0.20%-2.41%-0.52%-0.93%-0.56%AUD0.76%0.46%0.33%-1.87%0.52%-0 .38%-0.04%NZD1.15%0.85%0.72%-1.44%0.93%0.38%0.41%CHF0.82%0.50%0.35%-1.84%0.56%0.04%-0.41%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

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