Speculators increase bearish positions on the yen to the highest level in about nine years, suggesting renewed interest in yen carry trades. Data cited by the outlets shows leveraged funds raise short exposure to more than 115,000 contracts in the week through June 9, the largest since November 2017. The buildup reflects expectations that borrowing in yen and investing in higher-yield currencies may resume, even as concerns remain about potential risks. Bloomberg notes that the yen outlook is being weighed against the possibility of Japanese intervention to curb excessive yen moves and a potential rate hike by the Bank of Japan, which it said was expected on Tuesday. Japan Times and Bloomberg both link the increase in short bets to the revival of the carry trade, with the reporting emphasizing the scale of the change in market positioning. Neither source indicates that intervention occurs, but both highlight that investors are acting amid uncertainty tied to possible policy actions and official responses. The yen shorts are therefore framed as a sign of shifting positioning rather than a confirmed change in exchange-rate direction.
Yen short positions rise to nine-year high as carry trade revives
Speculators increase bearish positions on the yen to the highest level in about nine years, suggesting renewed interest in yen carry trades. Data cited by the outlets shows leveraged funds raise short...
- Leveraged funds increase yen bearish positions to above 115,000 contracts in the week through June 9.
- The rise takes yen short bets to a nine-year high, the highest since November 2017.
- The change is linked to a revival of the yen carry trade.
- Bloomberg highlights risks from potential yen intervention by Japanese authorities.
- Bloomberg also cites the possibility of a Bank of Japan rate hike as a factor in market sentiment.
Leveraged funds increased their bearish positions on the yen to over 115,000 contracts in the week through June 9, the highest level since November 2017, data has shown.
2 months agoSpeculators have boosted their bets against the yen to a nine-year high, signaling the revival of the yen carry trade despite intervention risks and a potential rate hike by the Bank of Japan on Tuesday.
2 months ago
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