Speculators turn net long on yen for first time since February

TOKYO, September 13 - For the first time since February, speculators have adopted a net long position on the yen, according to data released on Friday. This shift, as reported by the Commodity Futures Trading Commission, saw non-commercial positions turn to a net 10,796 long contracts in the week ending September 8, marking a reversal from the net shorts of 92,227 in the previous week.

This marks the first overall long reading since February 24. The yen has appreciated this month due to expectations of accelerated interest rate hikes by the Bank of Japan and potential asset repatriation by local investors. The dollar-yen rate hit 152.89 on September 8, the highest level for the currency since February 17. The years-long weakening trend for the yen intensified following the election of fiscal dove Sanae Takaichi as prime minister last October and a perception that the Bank of Japan was lagging behind in tightening monetary policy.

The yen plummeted to a 40-year low of 163.99 per dollar in July before Tokyo and Washington intervened to support the currency.