SKN | Why Is the Yen Surging Toward 150 as Traders Bet on a Bank of Japan Rate Hike?
Bonds & Foreign Exchange The Japanese yen extended its rally Tuesday, reaching 152.89 per dollar before giving back some gains to trade around 153.32. The move pushed the currency beyond levels reached during Japan’s July intervention and marked its strongest point since February. The latest advance follows a 1.2% gain Monday and leaves the yen approximately 4.5% stronger than its level near 160 per dollar at the beginning of last week. The speed of the move suggests that positioning, rather than a single economic catalyst, is driving the shift. Traders are increasingly betting that the Bank of Japan could accelerate monetary tightening. At the same time, Japanese investors may begin repatriating overseas funds, while carry trades that benefited from borrowing cheaply in yen are […]
