ART Takes ¥6 Billion Bet on Yen Amid Macro Uncertainty

Australia's second-largest superannuation fund, The Australian Retirement Trust (ART), has taken a significant position in Japanese yen while reducing its exposure to the U.S. dollar.

This move reflects ART's defined view on interest rates and currency valuation.

According to senior portfolio manager Jimmy Louca, the fund expanded its yen position over six months as the exchange rate moved toward 160 per dollar.

Louca believes that the yen fell to 40-year lows in July due to joint intervention by Japan and the United States, but thinks it has already reflected higher energy costs and is undervalued at current levels.

The yen's fair value, according to Louca, is near 150 per dollar, with a high of 140s also possible. The current rate stands around 159.21, representing a potential appreciation of roughly 6% if the yen reaches 150.