Yen Speculators Shift to Net Long Position for First Time Since February

TOKYO – Speculators moved into a net long position on the yen for the first time since February, according to data released late last week, signaling renewed strength in the Japanese currency.

CFTC data on yen futures showed net non‑commercial positions totalling 10,796 long contracts for the week ending September 8.

This marks a sharp reversal from a net short position of 92,227 contracts the prior week and the first overall long reading since February 24.

The yen has gained ground this month on expectations that the Bank of Japan will accelerate its rate‑hike schedule and that domestic investors may repatriate assets.

The dollar‑yen exchange rate peaked at 152.89 on September 8, its strongest level since February 17.

A multi‑year yen weakness accelerated after the election of fiscal dove Sanae Takaichi as prime minister in October and perceptions that the BoJ lagged in tightening monetary policy.

The currency fell to a four‑decade low of ¥163.99 per dollar in July, prompting coordinated market intervention by Tokyo and Washington to support it. — Reuters

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