BOJ rate hike still fails to boost the yen; hedge funds rebuild short bets; long USD positions continue to increase.

Zhito Finance APP has learned that although the Bank of Japan raised interest rates as scheduled last month, the yen continues to face depreciation pressure because its policy stance failed to meet the market's expected level of hawkishness, and the Japan-U.S. interest rate differential remains significant. The latest data from the U.S. Commodity Futures Trading Commission (CFTC) shows that hedge funds have re-established short positions in the yen, reversing the previous two consecutive weeks of bullish bets. At the same time, speculative funds further increased long positions in the U.S. dollar and turned net short on the pound for the first time since 2024, reflecting a strengthening bullish sentiment toward the U.S. dollar in the foreign exchange market.