Currencies
Markets See Yen’s Slump Deepening on Rethink of Fed, BOJ Path
- Yen has fallen almost 3% vs dollar in first few days of 2024
- Swaps markets shows softer expectations of Fed cuts this year
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The yen’s recent slide looks set to worsen in the coming weeks as traders recalibrate expectations for monetary policy in the US and Japan.
A key options-based gauge of short-term positioning shows traders are the least bullish on the yen since August, with yen selling by speculative accounts seen Thursday from Tokyo to New York. Yet the currency has ample room to weaken even further, with technical indicators showing last month’s year-end rally pushed the yen into overbought territory.