Reported 4 days ago
Institutional investors have shown increased optimism towards the yen, marking the highest net long positions since March 2021, as expectations rise that the Bank of Japan will raise interest rates. Current data suggests more than an 80% likelihood of a hike by July, driven by signs of a strong economic outlook, including the need for further interest rate increases and rising nominal wages. This optimism contrasts the yen's previous declines, though challenges remain from domestic retail investors seeking overseas investments and Japan's negative real interest rates.
Source: YAHOO