“As we continue to see inflation in Japan rising and being steadily above their target, they will want to move in the direction of abandoning or changing their yield-curve control policies and eventually there might be a need for a hike,” he said last week in an interview in Singapore.
Pacific Investment Management Co. is buying the yen on a bet the Bank of Japan will be pressured into tightening monetary policy as inflation quickens.
The bond giant started building a long yen position when Japan’s currency weakened past 140 per dollar a few months ago, said Emmanuel Sharef, a Pimco fund manager, whose areas of focus include multi-asset investing and asset allocation.
