The shift in his view highlights potential upside for the yen, where inflation-adjusted interest rates have exacerbated its decline to multidecade lows.
An $880 billion fund is betting it’s only a matter of time before the Bank of Japan tightens monetary policy.
All around the world, a backlash is brewing against the hegemony of the U.S. dollar. Brazil and China recently struck a deal to settle trade in their local currencies, seeking to bypass the greenback in the process. India and Malaysia in April signed an accord ...
Just over a week before a momentous leadership change at the Bank of Japan, investors are gearing up for the seemingly inevitable end to a decade of ultralow interest rates.
Investors say the dollar is on the way down because the bulk of Fed rate increases is over, and most other currencies will strengthen as their central banks keep tightening.
Beyond the yield fireworks any hawkish policy shift may soon ignite, steady selling of overseas bonds in favor of local alternatives by Japanese investors is already a market fact.
The Bank of Japan may have wrong-footed bond bears once again, but investors say a shift in policy is inevitable.
The yen surged 4.8% on Tuesday after the BOJ blindsided the market by raising its cap on 10-year bond yields to 0.5% from 0.25%.
The yen has climbed more than 11% from its October nadir amid government intervention, hopes for a slowing of U.S. rate hikes and speculation over a BOJ shift.
Analysts' bullishness is a marked change in tune from September, when hedge funds couldn’t get enough of shorting the yen — a high profile casualty of the BOJ’s ultradovish monetary policy.
