Japanese life insurers cut protection for their foreign assets against a stronger yen to a fresh 14-year low, signaling subdued expectations of a sustained rally in the nation¡¯s currency.
Nine of Japan¡¯s biggest life insurers collectively lowered bullish yen wagers tied to their foreign investment holdings to 44.4% at the end of the fiscal half in March, compared with 45.2% six months earlier, according to an analysis of their earnings reports.
While U.S. President Donald Trump¡¯s administration¡¯s unpredictable policymaking has stoked foreign exchange market volatility, that wasn¡¯t enough to stop a three-year decline in yen hedging. The Bank of Japan¡¯s policy interest rate is still 3 percentage points lower than the nation¡¯s inflation rate, with the next potential hike seen further delayed.
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