Speculative traders boost yen long positions to record high

Speculative traders have boosted their net long positions on the yen to a record high, according to data from the Commodity Futures Trading Commission as of April 15. As reported by Bloomberg, global tensions fueled by US President Donald Trump’s tariff policies are driving demand for safe-haven assets, including the Japanese currency.

On Monday, the yen climbed to its highest level against the dollar since September ahead of a meeting between the finance chiefs of Japan and the US. The Japanese currency has been strengthening against the greenback for three consecutive weeks, the agency reports. The dollar came under additional pressure after Trump publicly criticized Fed Chair Jerome Powell and even considered removing him from his post.

Mizuho Securities recently lowered its year-end forecast for the dollar-yen exchange rate to 133, while Nomura Securities expects an even steeper decline in the US currency, predicting the rate to hit 137.50.