Australian Dollar ($A) – Japanese Yen

The $A has struggled against the $US since early 2021 but everything’s relative in currency land as can be seen with its performance against the Japanese Yen. Prime Minister Fumio Kishida has inherited an economy struggling to generate any inflation leaving ultra-low interest rates i.e. short-term rates are at -0.1% while the BOJ has pledged to guide the 10-year yield at 0% i.e. free money for a decade, yes, please!

• At some stage Japanese interest rates are likely to edge higher as they have locally but it feels a way off at present.