The yen started the new week at four-year lows versus the euro and a four-month trough on the dollar, still very much the funding currency of choice in a trend that is likely to continue in this U.S. holiday-shortened week.
Latest data showed currency speculators increased net short positions in the Japanese currency to the most in six years, reflecting a belief the Bank of Japan will stay the most aggressive in maintaining its massive stimulus program among major central banks.
The euro rose as far as 137.36 yen in early Asian trade, pipping Friday’s peak of 137.32. The dollar retested Friday’s high of 101.36 yen, on track to break the July 8 peak of 101.54.
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