Speculation that the Bank of Japan isn't likely to change tack on its existing easy-money monetary policy anytime soon has prompted hedge fund and asset managers to up their bearish positions in the yen, according to a repot by Bloomberg.

Speculation that the Bank of Japan isn't likely to change tack on its existing easy-money monetary policy anytime soon has prompted hedge fund and asset managers to up their bearish positions in the yen, according to a report by Bloomberg.

The report cites CFTC data as showing that in the five-day period to 30 May, and a week after leveraged funds increased net shorts on the yen to their highest level in almost a year, asset managers also upped their short positions in the currency to the largest so far for 2023. 

Asset managers were net sellers for two straight weeks after being net buyers for 11 consecutive weeks. 

The Japanese currency lost 4.7% in the two months through May against the dollar, the second-worst performer among its major currency peers, and reached a six-month low of 140.93 on 30 May.