Yen Short Bets Keep Paying Off With Currency Tumbling Toward 130
- Currency falls versus dollar for 14th consecutive session
- Traders bet on widening yield gap between Japan and U.S.
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The yen’s historic run of losses showed no signs of easing Wednesday as it weakened toward 130 per dollar after an overnight rise in Treasury yields.
The currency dropped for a 14th consecutive session -- down 0.3% to 129.35 -- as traders bet on further divergence between U.S. and Japanese interest rates. A consensus in Tokyo that it would reach 130 against the dollar in coming months looks set to happen even quicker and investors are readying for the chance that policy makers will seek to intervene to the defend the beleaguered currency.