Tokyo, 15 June 2026 – Global investors are rebuilding bearish bets against the Japanese yen, with short positions reportedly rising to a nine-year high as the carry trade returns to favour despite intervention risks and expectations of further Bank of Japan tightening.
The renewed pressure on the yen reflects one of the most powerful forces in global currency markets: the gap between Japan’s still-low interest rates and higher yields available elsewhere. For investors, the yen remains attractive as a funding currency because it can be borrowed cheaply and used to invest in higher-yielding assets such as US bonds, emerging-market currencies or selected global equities.
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