Yen Shorts Crumble as 2022’s Hottest FX Trade Comes to an End
- Daiwa Securities, Rabobank say peak in dollar-yen has past
- Goldman Sachs sees currency bouncing back over longer-term
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The juiciest profits from betting against the yen -- one of the hottest macro trades of 2022 -- are a thing of the past, a growing cohort of strategists say.
Three key pillars of the sell-the-yen trade -- a widening US-Japan interest-rate gap, soaring oil prices and the loss of the currency’s haven status -- are crumbling as growing recessionary fears keep a cap on yields, put pressure on crude and send investors back into the arms of traditional safe assets. Dollar-yen, which soared 38% from a March 2020 trough to mid-July this year, is in retreat.