Market News
How the yen tripped up investors...again - REUTERS
By Rae Wee and Ankur Banerjee
Summary
- Yen at nine-month lows, defying expectations of a rebound
- Cautious BOJ, expectations of greater fiscal largesse in Japan heap pressure on currency
- Traders increasingly lay bets on further yen weakness in near-term
SINGAPORE, Nov 13 (Reuters) - Investors laid a record wager on Japan's yen rising to take advantage of a long-overdue economic revival that coincided with expectations for a U.S. slowdown.
Instead, what's unfolded is a cautionary tale of the Trump era.
The yen is struggling at nine-month lows and speculators are back-pedalling from their biggest bet on the currency in records stretching back almost four decades.
They have been wrong-footed by a U.S. economy surprisingly resilient to trade shocks, where policymakers have cooled on further interest rate cuts, and by a new government in Japan that has shown preference for the central bank to keep a lid on rate rises.
