Key facts
- The Japanese yen hit a 39-year low against the U.S. dollar on July 22.
- U.S. institutional investors consider the yen to be significantly undervalued.
- Investors are hesitant to invest in the yen due to a lack of clear policy action from Japanese officials.
Despite believing the Japanese yen is significantly undervalued, many U.S. institutional investors are reluctant to purchase the currency. Their hesitation stems from a wait-and-see approach, as they await clear policy actions from Japanese officials aimed at safeguarding the yen. The yen reached a 39-year low against the U.S. dollar on July 22.