Speculators turn net long on yen for first time since February
Digital FinanceMacro
Speculators turned net long on the Japanese yen for the first time since February, according to Commodity Futures Trading Commission data reported by Reuters. Net non-commercial positions in yen futures reached 10,796 long contracts in the week through September 8, a sharp reversal from net short positions of 92,227 contracts a week earlier and the first overall net long position since February 24. The swing of more than 100,000 contracts in a single week followed a sharp yen rally driven by expectations that the Bank of Japan could accelerate its rate-hike schedule and speculation that Japanese investors may repatriate assets held overseas. The yen reached 152.89 against the U.S. dollar on September 8, its strongest level since February 17, after earlier hitting a four-decade low of 163.99 per dollar in July amid concerns the BOJ was falling behind other central banks in tightening. Tokyo and Washington subsequently intervened in currency markets to support the yen, helping reverse some of the earlier losses.
