Speculators cut bearish yen bets after suspected Japan interventions
Updated
Updated · Reuters · May 8
Speculators cut bearish yen bets after suspected Japan interventions
9 articles · Updated · Reuters · May 8
CFTC data showed net short yen positions fell to 61,738 contracts by May 5 from 102,059 a week earlier after estimated interventions exceeding $60 billion.
A source said Japan also entered currency markets during early-May holidays, adding to April 30 yen-buying that followed the currency's slide to a near two-year low of 160.725 per dollar.
The yen later traded at 156.71, while investors saw the 160-165 range as effectively off-limits amid intervention threats and hopes a more hawkish Bank of Japan could slow its decline.
After a $60 billion intervention, is the yen's recovery just a temporary pause before an even deeper plunge?
Japan is selling US bonds to save its currency. Could this accidentally trigger a crisis in the US Treasury market?
Could speculators fleeing the yen ignite a 'deleveraging spiral' that threatens the global financial system?