The dollar-yen rate fell to nearly ¥152 in September, while hedge funds’ increased yen buying was noted. Its connection to the subsequent appointment as Treasury secretary was later discussed, and attention has continued to focus on developments. Only the key points are included as an approximately 80–120-character lead.
In September, the dollar-yen rate briefly plunged to ¥152, while speculative yen positions in CFTC statistics, said to reflect hedge-fund trading, expanded sharply to more than 100,000 net long contracts. This was cited as a possible factor behind the break below ¥155, a level that had held even after coordinated U.S.-Japan intervention at the end of July, and the ensuing move led by a weaker dollar and stronger yen.
One factor cited for the sharp expansion in net speculative yen buying, led by hedge funds, since 2025 was the inauguration of the second Trump administration in January 2025 and the appointment of Bessent, a former hedge-fund executive, as Secretary of the Treasury. The view was expressed that this created circumstances in which yen-buying pressure increased.
While analysis has indicated that the narrowing U.S.-Japan interest-rate differential moved in tandem with yen-buying activity, driving a weaker dollar and stronger yen, some have also questioned the rationale for yen buying, noting that there were periods when the differential exceeded 4% and the dollar remained dominant.
In September 2026, Bessent Treasury Secretary's so-called “house” remarks became a topic of discussion during a period when the yen briefly strengthened to ¥152. The view was expressed that his remarks could be linked to increased hedge-fund yen buying.
While hedge-fund yen buying continued from September onward, Secretary Bessent repeatedly criticized Japan's reflationary policy. Some observers said the two appeared to be coordinating moves toward a stronger yen.