Bank of America Survey: Global Fund Managers' Bearish Sentiment on Yen Highest Since 2022

Odaily reports that a Bank of America survey shows global portfolio managers' bearish sentiment on the yen has risen to its highest level in approximately four years, as risks related to Japan's fiscal and monetary policy outlook outweigh the authorities' potential to intervene in the currency market.

“Investor bearishness on the yen is the highest since 2022, driven primarily by monetary and fiscal policy risks,” Bank of America strategists Ralf Preusser and Adarsh Sinha wrote in a report on July 10. The survey found that 40% of respondent traders are bearish on the yen due to risks from Japan's fiscal and central bank policies, up from 35% in June. With the narrowing of the US-Japan interest rate differential, 10% of respondents are bullish on the yen, down from 12% in June.

Meanwhile, data from the Commodity Futures Trading Commission (CFTC) shows that net short positions on the yen held by speculative leveraged funds reached their highest level since 2007 as of the end of June.