Japan · Wall Street · Goldman Sachs · Crypto Briefing
Hedge funds turn bearish on yen as currency nears 40-year low, supercharging carry trades
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Leveraged traders hold their most negative yen positions since 2007, with the currency sliding to levels not seen since 1986.
Key facts
- Japan’s benchmark interest rates sit around 0.5% to 0.75%, while US Treasuries offer approximately 4%
- During April and May 2026, Japan spent over $73.5 billion intervening in foreign exchange markets to prop up the yen
- The Bank of Japan has been inching rates higher, moving from negative territory to the current 0.5% to 0.75% range
- The yen has weakened to roughly 162 against the US dollar, a level it hasn’t touched since 1986
Summary
The Japanese yen is having a truly awful year, and the people with the biggest wallets on Wall Street are betting it gets worse. The yen has weakened to roughly 162 against the US dollar, a level it hasn’t touched since 1986. Goldman Sachs has raised its USD/JPY forecast to 165, suggesting the bank sees more pain ahead for yen bulls. During April and May 2026, Japan spent over $73.5 billion intervening in foreign exchange markets to prop up the yen.