Bank of America survey: Global fund managers 'bearish sentiment on yen reaches highest since 2022

On July 13, a Bank of America survey showed that global portfolio managers 'bearish sentiment on the yen rose to its highest level in about four years as risks to Japan's fiscal and monetary policy outlook overshadowed the possibility of Japanese government intervention in the foreign exchange market. Bank of America strategists Ralf Preusser, Adarsh Sinha and others wrote in a report on July 10:"Investors are bearish on the yen exchange rate to the highest level since 2022. The main factors driving this view are monetary policy and fiscal policy risks." A Bank of America survey showed that 40% of traders surveyed were bearish on the yen due to Japan's fiscal and central bank policy risks, up from 35% in June. As the US-Japan spread narrowed, 10% of respondents were optimistic about the yen, down from 12% in June. At the same time, the U.S. Commodity Futures Trading Commission (CFTC) data showed that as of the end of June, speculative leveraged funds held the largest net short positions in the yen since 2007.