Speculators turn net long on yen for first time since February

On September 8, speculators took on a net long position in the yen for the first time since February, according to Commodity Futures Trading Commission data released late on Friday. The number of yen futures contracts held by non-commercial parties reached 10,796 longs, marking a shift from the net shorts of 92,227 held the previous week.

This change marked the first time since February 24 that speculators had a net long position in the yen overall. The yen has been on a steady rise this month due to expectations of quicker rate hikes by the Bank of Japan and a potential asset repatriation by local investors. The currency achieved a new seven-month high of 152.89 against the dollar on September 8, the strongest level since February 17.

The yen's surge intensified following the election of fiscal dove Sanae Takaichi as prime minister in October last year and growing recognition that the Bank of Japan was falling behind in tightening monetary policy. The currency had plummeted to a 40-year low of 163.99 per dollar in July, before receiving a market intervention from both Tokyo and Washington to support its value.