In Japan, speculators turned net long on the yen for the first time since February
In Japan, speculators moved into a net long position on the Japanese yen for the first time since February. According to Channel NewsAsia, citing Reuters, this indicates stronger market support for the Japanese currency.
Futures data
Statistics from the U.S. Commodity Futures Trading Commission showed that in the week through September 8, net non-commercial positions in yen futures amounted to 10,796 long contracts. A week earlier, the net short position stood at 92,227 contracts.
This is the first overall net long position in the yen since February 24.
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Yen dynamics
In September, the yen strengthened on expectations of an accelerated schedule of rate hikes by the Bank of Japan and a possible return of assets to the country by local investors. On September 8, the dollar-yen exchange rate reached 152.89 yen per dollar, the Japanese currency’s strongest level since February 17.
The prolonged weakening of the yen accelerated after Sanae Takaichi was elected Japan’s prime minister in October last year, as well as due to expectations that the Bank of Japan is lagging behind in tightening monetary policy. In July, the yen fell to a 40-year low of 163.99 yen per dollar. After that, Tokyo and Washington intervened to support the currency.
