Hedge funds rebuilt a short wager against the Japanese yen as the currency remains under pressure. Leveraged traders held about ¥210 billion ($1.3 billion) tied to bearish wagers on the yen in the week ended Sept. 29, according to Commodity Futures Trading Commission data released on Friday and compiled by Bloomberg. The latest positioning shows those traders wiping out their bullish bets from the prior two weeks.
The yen is weaker for a third-straight week against the dollar, even after Japanese officials comments on the implications of a pressured currency. Although the Bank of Japan raised interest rates last month as expected, the central bank didn’t sound aggressive enough to traders — and the interest-rate gap between Japan and the US remains substantial.
Meanwhile, speculative traders added to their bullish stance on the dollar, and hedge funds turned short on the British pound for the first time since 2024. The pound this week hit a three-month low against the dollar.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing