Currency dealers turn their eyes to the yen and play the dollar

Currency markets saw a week full of fluctuations, which asked hedge funds to go out of the US dollar trade centers and draw their attention to the Japanese yen. The demand for the Japanese yen jumped yesterday to become the most traded currencies against the US dollar, according to the data of the company “The Depository Trust & Clearing”. The volume of trading options contracts on the Japanese yen reached the highest level of its current year, after the Japanese currency rose against all its most important peers, supported by wage data in Japan, which came better than expectations, which strengthened expectations by continuing the central bank of Japan to raise interest rates. “During the current week, we recommended the implementation of medium -term sales on the US dollar against the Japanese yen aimed at the scope of 147 to 150, and these recommendations have received a lot of attention from our clients around the world,” said Sagar Sambrani, the main trader of foreign exchange options in Nomura International in London. The US dollar was closed to the yen at 152.61 yesterday, after it last dropped to 152.12. Interest rates in Japan raised interest rates last month, while markets expect about 75% of the application of another increase by next July. The summary of the view of the meeting of the Central Bank in January indicated that it would continue to monitor the value of the Japanese yen, and it could again raise interest rates to reduce the excessive decline in its value and its implications for inflation in Japan. Read more: The Japanese central raises the interest rate to the highest level in 17 years. The Jen today received additional support from the statement of a member of the Council of Directors of Japan Bank Naoki Tamura that the central bank should increase the most important interest rate to about 1% by the end of the financial year ending in March 2026. Helen Guevin, foreign exchange expert in Monex said: Japanese side will no longer improve Gap, which will support the Japanese yen. The Bloomberg index for the green currency fell for the second consecutive day yesterday, with investors continuing to liquidate their investment centers linked to the US dollar, according to speculators. Anthony Foster, head of the Puritan currency unit for the ten large large group in ‘Nomura International’ in London, said: ‘There is already a significant decline in the US dollar purchase centers, and this is very similar to what happened during January 20. After the initial liquidation, investors rebuilt their investment centers, but the postponement of the dollar that is more is to stare to abandon the US dollar. The worst week in a year and a half, with the risk of customs duties, a decline in the fall in the US dollar this week due to the decline in returns on US bonds, which recorded its lowest levels during 2025 yesterday. Most of the mortgage returns dropped by at least ten basis points during daily trade, after the issuance of weaker data expected to the service sector. US Treasury Secretary Scott Besent said on Monday that the administration of US President Donald Trump is focusing on reducing borrowing costs by returns on treasury effects for ten years, and not by the most important short interest rate of the US federal reserve.