JPY likely to recover modestly in 2024 after three straight years of weakness – HSBC

FXStreet Insights Team FXStreet

2023 marked the third consecutive year of outsized declines in the Japanese Yen (JPY). However, 2024 may be different for the currency, according to economists at HSBC.

A capitulation of short JPY speculative positions and lifers’ FX hedging could support the JPY

After three consecutive years of weakness, the JPY is set to recover this year, albeit modestly as markets have already built in expectations for interest rates to increase in Japan and fall in the US.

A capitulation of short JPY speculative positions and lifers’ FX hedging should be supportive for the JPY.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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