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chartchartA short position is essentially a wager that an asset's price will fall, and a long position is a bet it will rise. In aggregate, funds' short position of almost 125,000 contracts is the largest since November last year. But it failed to materially reduce the net speculative wager because funds also substantially reduced their long yen position. Ultimately, funds trimmed their net short yen position by only a few thousand contracts following the Sept. 22 intervention. The latest CFTC data shows they evidently felt confident enough to load up on short yen positions again.

☆ Explainer: Yen is past key 150 threshold. What's next?
▼ + stars: | 2022-10-21 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

An employee of the foreign exchange trading company Gaitame.com works in front of monitors showing the Japanese yen exchange rate against the U.S. dollar at its dealing room in Tokyo, Japan, October 21, 2022. Below are details on how Japanese policymakers could respond:WHAT HAPPENED SINCE JAPAN'S LAST YEN-BUYING INTERVENTION? Register now for FREE unlimited access to Reuters.com RegisterSince then, policymakers have repeatedly threatened to act against volatile yen moves. Policymakers have repeatedly said they are looking at the speed of yen moves, not its level, in deciding whether to intervene. That means Tokyo will avoid intervening in a way that appears as if it is defending a certain yen level.

Kanda, vice finance minister for international affairs, said he will not comment on whether Japan was intervening now or have stepped into the currency market earlier on Thursday. Japanese Finance Minister Shunichi Suzuki also told reporters after the yen's latest slide that he will "take decisive action" against excessive, sharp yen moves. "We cannot tolerate excessive, rapid currency market moves driven by speculative action," Suzuki said. The yen's break of 150 against the dollar took it to its weakest level since August 1990. The BOJ, for its part, ramped up efforts to defend its 0% bond yield cap earlier on Thursday with offers of emergency bond buying.

The break above the key milestone heightens pressure for Tokyo to step into the currency market again to rein in the yen's relentless decline, which is adding to the country's already swelling import bill. "We cannot tolerate excessive, rapid currency market moves driven by speculative action," Suzuki said. The BOJ, for its part, ramped up efforts to defend its 0% bond yield cap earlier on Thursday with offers of emergency bond buying. The Ministry of Finance's dollar-selling, yen-buying intervention last month was the first time authorities had acted in the markets to prop up the yen since 1998. The yen's tumble below 150 against the dollar on Thursday took it to its weakest level since August 1990, keeping investors on high alert to the possibility of another Japanese intervention in the currency market.

The central bank's step underscores the dilemma Tokyo faces in trying to contain unwelcome yen falls, without resorting to interest rate hikes that could derail Japan's fragile recovery. Register now for FREE unlimited access to Reuters.com Register"Recent rapid and one-sided yen declines are undesirable. "We will continue to take appropriate steps against excess volatility, while watching currency market developments with a strong sense of urgency," he said. The government, which holds jurisdiction over currency policy, spent 2.8 trillion yen ($19 billion) in dollar-selling, yen-buying intervention last month when authorities acted in the markets to prop up the yen for the first time since 1998. The BOJ is widely expected to maintain its massive stimulus programme at its next two-day policy meeting ending Oct. 28.

☆ Bank of Japan to conduct emergency bond buying as yen teeters near 150
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Oct 20 (Reuters) - Japan's central bank on Thursday said it would hold emergency bond-buying operations, offering to buy some $667 million in government debt, a move designed to put a floor under bond prices. The yen has been hammered this year by the widening difference between U.S. and Japanese interest rates. Register now for FREE unlimited access to Reuters.com RegisterBut the central bank has so far showed no sign of changing tack. Thursday's move showed the BOJ was continuing to buy bonds and keeping the YCC policy in place. The central bank said it would buy 100 billion yen ($667 million) of JGBs with maturities of 10-20 years and another 100 billion of bonds with maturities of 5-10 years.

We absolutely cannot tolerate excessively volatile moves driven by speculative trading," Suzuki told parliament on Thursday. "We will continue to take appropriate steps against excess volatility, while watching currency market developments with a strong sense of urgency," he said. Markets are on high alert on whether Japan will intervene in the currency market again as the yen falls near the key psychological barrier of 150 to the dollar. The government, which holds jurisdiction over currency policy, spent 2.8 trillion yen ($19 billion) in dollar-selling, yen-buying intervention last month when authorities acted in the markets to prop up the yen for the first time since 1998. The BOJ is widely expected to maintain its massive stimulus programme at its next two-day policy meeting ending in Oct. 28.

Its ultra-loose stance has accelerated Japanese investment flows abroad, helping to turn the yen's slump into one of historic proportions. Its net international investment position, the difference between the stock of assets it holds overseas and stock of Japanese assets held by foreigners, was $3.29 trillion at the end of June. International Monetary Fund figures show that of Japan's $9.96 trillion assets overseas, around $3.7 trillion is in equity-related investments, and some $5.7 trillion in debt instruments, including official reserves. Deutsche Bank strategist Alan Ruskin says a YCC change could have spillover effects that could last for a few weeks. Meanwhile, Japanese retail foreign currency deposits at domestic banks rose to 26.58 trillion yen ($182 billion) at the end of August, up 8.3% since the start of the year.

☆ IMF sees Japan's currency intervention as 'signaling' move with short-term impact
▼ + stars: | 2022-10-13 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

Panth said Japanese authorities likely intervened last month with the view that the yen's "pretty sharp" moves could dampen corporate investment and hurt consumer confidence. "It was a fairly small amount given how liquid the market is," Panth said, referring to the size of Japan's intervention. Panth said he had not seen anything so far that suggests the yen's value is deviating from Japan's economic fundamentals. When looked at historically, the impact of these kinds of interventions doesn't last very long," he said. The intervention was a one-time event so far of relatively small magnitude in a deep market."

☆ Bank of Japan keeps ultra-low rates, dovish policy guidance
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +11 min

Sept 22 (Reuters) - The Bank of Japan maintained ultra-low interest rates and dovish policy guidance on Thursday, reassuring markets that it will continue to swim against a global tide of central banks tightening monetary policy to combat soaring inflation. "However, we believe that the BOJ will never allocate monetary policy for the FX rate adjustment and will stick to the YCC policy. "The most important thing is how the foreign-exchange rate reacts to that contrast in monetary policy between the U.S. and Japan. It also leaves the impression there will be no change in monetary policy during Kuroda's remaining term." He has said lesser about any merit of the weak yen recently out of consideration towards public sentiment against rising costs of living."

☆ This fund manager is beating the market. Here’s what he’s betting against
▼ + stars: | 2022-09-22 | by ( Zavier Ong | ) www.cnbc.com time to read: +4 min

Speaking ahead of the Fed meeting, investment veteran Patrick Armstrong believes the Fed is unlikely to keep hiking rates indefinitely. "I think consensus probably has the Fed getting to 4.25% in March next year, and then probably pausing. Armstrong is co-fund manager of the Prosper Global Macro fund , a diversified multi-asset fund with an inflation beating mandate. The fund was up 4.8% as of the end of August, outperforming major indexes in both the U.S. and Europe. Read more Fund manager says the bear market is going to get 'nasty' — but says he's not 'freaking out' Looking for a short-term trade?

☆ BOJ to keep ultra-low rates, remain global outlier despite weak yen
▼ + stars: | 2022-09-21 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

Any such decision could drive down the Japanese currency further from 24-year lows hit in recent weeks, as investors focus on the widening gap between Japan's ultra-low interest rates and the U.S. Federal Reserve's aggressive rate hike plans. "With other central banks hiking rates, the BOJ's negative rate policy will come under the spotlight and may unleash further yen selling." The BOJ's rate review will be the first one for Hajime Takata and Naoki Tamura, who joined the nine-member board in July. They succeeded former commercial banker Hitoshi Suzuki and economist Goushi Kataoka, a vocal advocate of aggressive easing who consistently voted against keeping rates steady. A unanimous vote would suggest the two newcomers are unlikely to rock the boat on monetary policy for the time being.

☆ The Japanese yen is at 24-year lows. Here's what to expect at the next BOJ meeting
▼ + stars: | 2022-09-20 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

The Japanese yen is hovering close to its weakest levels since 1998, and authorities have hinted at taking action to stem the currency's decline. The widening rate differential has caused the yen to weaken significantly, with the Japanese currency falling about 25% year-to-date. Loading chart...Last week, the Bank of Japan reportedly conducted a foreign exchange "check," according to Japanese newspaper Nikkei – a move largely seen as preparing for formal intervention. watch nowStrategists at Goldman Sachs also don't see the central bank shifting from its yield curve control policy, pointing to its hawkish global peers. End of AbenomicsMonetary policy changes by Japanese authorities as unlikely, chances being especially low under BOJ governor Harukiho Kuroda, UBS Chief economist for Japan Masamichi Adachi told CNBC last week.

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