RBC BlueBay Goes Long Yen, Eyeing BOJ Rate Hike, Leadership Vote

RBC BlueBay Asset Management has taken a long yen position, betting that Japan’s political transition and a possible Bank of Japan rate hike in October could drive further strength in the currency.

“We initiated the position just below 150 on dollar-yen” using dollar shorts, chief investment officer Mark Dowding said in an interview. “We do think an October move is possible or likely. And so we think this is a more attractive moment to be long the yen, as long as Koizumi is the victor in the Liberal Democratic Party’s leadership contest.”