Speculators turn net long on yen for first time since February

Tokyo, September 13 - For the first time since February, speculators have taken a net long position on the yen, according to data released late on Friday, indicating a growing surge in support for Japan's struggling currency. The Commodity Futures Trading Commission reported that net non-commercial positions reached 10,796 long contracts in the week ending September 8, representing a shift from net shorts of 92,227 in the previous week and the first overall long reading since February 24.

The yen has experienced a significant surge this month, driven by expectations of a faster pace of 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 in October last year and a perception that the BOJ was lagging behind in implementing tighter monetary policy.

The yen plummeted to a four-decade low of 163.99 per dollar in July before receiving a market intervention from both Tokyo and Washington to strengthen the currency.