Yen Slides to Six-Month Low on Speculator Bets and Rising Interest Rates

The Japanese Yen (JPY) has seen significant price action in recent days, with USD/JPY trading just above 154.00, its weakest level in six months.

Speculators added 28.9K Yen short contracts in the week to September 1, and non-commercial net shorts widened by 28.9K contracts to 92.2K over that reporting week.

The Prime Minister's own economic adviser now expects a hike in interest rates this month and another by January, which could weigh on the economy.

The Bank of Japan (BoJ) has been buying Yen when it is weak, but its policy rate is still 1%, while the target range in Washington is 3.50% to 3.75%.