Bloomberg Surveillance · Friday, September 4, 2026
The Japanese yen is considered significantly undervalued, with current price levels being 'wildly at the wrong level,' even after potential intervention. This situation is a concern for global markets, as the yen has historically served as a funding currency, and shifts away from this could have broader implications.
“Japan has been the currency that investors writ large, risk managers have used to fund their exposure in other places. Now you see a lot of that being taken off the books.”
“The BOJ should be going in September, but still, even sitting at 155, the yen is wildly at the wrong level.”
“So I think from a funder perspective, we've talked about this for a long time, that I think the Asian currencies are the most just out of whack from a valuation perspective. So I think we sit here with knowing that the yen is priced at the wrong level.”