The Australian dollar rose to a fresh 16-year peak against the low-yielding Japanese currency for a third consecutive session on Monday, as investors chase better but riskier returns on high-yielding currencies. The local currency was just below 106 yen.
Investors expect the Bank of Japan (BoJ) to leave its interest rates at 0.50 percent, the lowest among industrialised nations, after a two-day meeting that starts on Wednesday. Many investors expect the BoJ to lift rates in August. NabCapital currency strategist John Kyriakopoulos said the BoJ was expected to stick to its "glacial pace" of rate rises.
"There looks to be very solid support for Aussie/yen down at the 104.60/65 yen and we see any dips on policymaker comments as buying opportunities," Kyriakopoulos said. The Aussie/yen cross was quoted at 105.87/97 yen, compared with 105.47/57 yen here late on Friday, according to Reuters data. Its high was 105.93 yen. Against the US dollar, the Aussie was at $0.8577/79, compared with $0.8561/66 here late on Friday.