Speculators turn net long on yen for first time since February

For the first time since February, speculators adopted a net long position on the yen, according to data released on Friday, indicating growing confidence in Japan's ailing currency. The Commodity Futures Trading Commission reported that non-commercial positions amounted to 10,796 long contracts during the week ending September 8, contrasting sharply with a net short position of 92,227 in the previous week.

This marked the first overall long reading since February 24. The yen has experienced a significant surge this month due to forecasts of a brisker pace of interest rate hikes by the Bank of Japan and potential asset repatriation by local investors. The dollar-yen rate peaked at 152.89 on September 8, the highest level for the currency since February 17.

The yen's years-long decline gained momentum following the election of fiscal conservative Sanae Takaichi as prime minister in October last year and the perception that the Bank of Japan was lagging in tightening monetary policy. The currency plummeted to a four-decade low of 163.99 per dollar in July, but a market intervention by Tokyo and Washington helped stabilize its value.