A Bank of America survey found that global portfolio managers have turned the most bearish on the Japanese yen since 2022, as concerns over Japan’s fiscal and monetary policy outlook outweighed the chance of official currency intervention. In a July 10 report, BofA strategists Ralf Preusser, Adarsh Sinha and others said bearishness on the yen had reached its highest level since 2022, driven mainly by policy-related risks. The survey showed that 40% of respondents were bearish on the yen because of risks tied to Japan’s fiscal stance and central bank policy, up from 35% in June. At the same time, only 10% were bullish on the currency due to a narrowing U.S.-Japan rate gap, down from 12% a month earlier. Separate data from the U.S. Commodity Futures Trading Commission showed that, by the end of June, speculative leveraged funds were holding their largest net short yen position since 2007.
Odaily reported that a Bank of America survey showed global portfolio managers are the most bearish on the Japanese yen since 2022, with risks tied to Japan’s fiscal and monetary policy outlook outweighing the possibility of government intervention in the currency market.
In a July 10 report, BofA strategists Ralf Preusser, Adarsh Sinha and others wrote: “Investor bearishness on the yen has reached its highest level since 2022, with monetary policy and fiscal policy risks as the main drivers of that view.”
According to the survey, 40% of respondents were bearish on the yen because of risks related to Japan’s fiscal policy and central bank policy, up from 35% in June. Meanwhile, 10% were bullish on the yen because the U.S.-Japan interest rate gap had narrowed, down from 12% in June.
Separately, data from the U.S. Commodity Futures Trading Commission, or CFTC, showed that as of the end of June, speculative leveraged funds held their largest net short yen position since 2007.
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