Hedge funds warming to yen caught out by greatest drop in 15 years

Hedge funds turned bullish on the yen simply earlier than dovish feedback by Japan’s new prime minister and a strong U.S. jobs report helped spark the worst week for Japan’s forex since late 2009.

Speculative traders flipped to a web lengthy place on the yen for the primary time since mid-August, Commodity Futures Trading Commission information for the week to Oct. 1 reveals. The shopping for got here proper earlier than Prime Minister Shigeru Ishiba mentioned the nation wasn’t prepared for additional rate of interest hikes.

U.S. nonfarm payrolls information that was increased than all estimates additional bolstered demand for the buck, and prompted the markets to cost out one other massive Federal Reserve charge minimize subsequent month.