Yen Breaks Seven-Month High Against Dollar Amid Repatriation Flows

The Japanese yen has reached its highest level in seven months against the US dollar. On Monday (7/9), the US dollar fell as low as 154.05 yen, its lowest level since February.

In recent trading, the dollar was down 1.1% at 154.4 yen, breaking below the 155-yen level that had previously marked the lowest point after a joint intervention by the US and Japan to support the yen in the past.

Lee Hardman, senior currency analyst at MUFG, stated that the break below the 155-yen level is a bullish signal for the Japanese currency, potentially leading to further gains.

The yen's appreciation has been rapid, with the dollar trading above 160 yen just last week. Investors are also anticipating an unwinding of yen-based carry trades, which have contributed to pressure on the Japanese currency in the past.