Yen Surges as Traders Bet the Big Turning Point Is Finally Near
- Amundi is cutting yen shorts on view US easing may start soon
- DBS sees an unwinding of carry trades, unease for yen bears
Signs of an inflection point for the yen are mounting amid growing expectations that the interest rate gap between Japan and the US is finally set to shrink.
The currency rallied 1% on Thursday as it extended its sharp rebound over the last two weeks from lowest level against the dollar since the 1980s. The advance has been spurred on by Japan’s apparent intervention to support the yen, a slashing of bets against the currency by hedge funds and the unwinding of global carry trades that have been weighing it down.
