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Updated · Bloomberg · Jul 6Hedge Funds Boost Yen Shorts to 138,000 Contracts as Currency Nears 40-Year Low
3 articles · Updated · Bloomberg · Jul 6Summary
- Leveraged traders raised bearish yen bets to nearly 138,000 futures and options contracts as of June 30, the most negative positioning since 2007.
- CFTC data released Monday showed funds adding to shorts as the Japanese currency trades near its weakest level in almost four decades.
- The positioning underscores growing expectations of further yen losses, tying speculative sentiment directly to the currency’s prolonged slide.
Insights
With hedge funds making their biggest bet since 2007, is the yen trade too crowded to succeed? Can Japan save its currency without risking a shock to the U.S. stock market? As the yen hits a 40-year low, is Japan on the brink of an unavoidable economic crisis?