2023 marked the third consecutive year of outsized declines in the Japanese Yen (JPY). However, 2024 may be different for the currency, according to economists at HSBC.
A capitulation of short JPY speculative positions and lifers’ FX hedging could support the JPY
After three consecutive years of weakness, the JPY is set to recover this year, albeit modestly as markets have already built in expectations for interest rates to increase in Japan and fall in the US.
A capitulation of short JPY speculative positions and lifers’ FX hedging should be supportive for the JPY.
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