Week InReview: December 8, 2023

Yen jumps.

The yen strengthened by the most in nearly a year as traders ramped up bets the Bank of Japan will ditch the world's last negative interest-rate regime as soon as this month. Comments from BOJ Governor Kazuo Ueda jolted financial markets, and pushed the yen to appreciate sharply. The move was a “complete capitulation of the yen shorts,” Brad Bechtel, Jefferies' global FX head, said. It was also the biggest rally since the BOJ blindsided investors last December, when then-Governor Haruhiko Kuroda doubled the cap on 10-year yields.

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