AUD/JPY Hits Highest Level in 36 Years – Why There’s More Behind It Than Just Carry Trade

AUD/JPY Approaches Historic Highs

The AUD/JPY pair has become a focal point for traders this month. Since the start of April 2026, the Australian dollar has climbed by over 3.5% against the Japanese yen, currently trading near 113.50. This surge is more than just routine market movement—the pair is now approaching heights not seen in over thirty years.

The primary driver behind the Australian dollar’s rally is the Reserve Bank of Australia’s firm approach to monetary policy. In March, the RBA raised its cash rate by 25 basis points to 4.10%, citing persistent inflation as the main reason for the hike.