|
Komfie Manalo, Opalesque Asia: Hedge funds and large currency speculators have raised their bets that the Japanese yen will further improve against the U.S. dollar as Japan’s currency rose for the seventh straight day, data showed.
A report by Bloomberg showed that wagers on the yen reached the highest since 1992.
The yen continues its upward surge helping investors to gauge foreign-exchange volatility reaching a four-year high. Speculators have ignored moves by the Japanese government to check the advance of the yen, resulting for the currency to extend its winning streak to the longest since September 2012, the report added.
However, Deutsche Bank AG and Bank of Singapore Ltd have commented that the Japanese yen is still within or below its fair value.
Sim Moh Siong, a foreign-exchange strategist at Bank of Singapore, said, "The yen is nowhere near overvalued. Even though the yen has moved quite substantially against the dollar, you look at yen relative to euro and other currencies it hasn’t really strengthened all that much."
The yen jumped 0.3% to 107.70 per dollar after reaching 107.63, the strongest level since October 27, 2014.
To know more about hedge fund opportunities in Japan, please read our latest Opalesque 2016 Japan Roundtable here:...................... To view our full article Click here
|
RSS
