Reported 3 months ago
Global hedge funds have extensively retreated from short positions on the Japanese yen, which has surged nearly 5% against the U.S. dollar since July 10, following a substantial intervention by Japanese authorities. UBS reports that most hedge funds have covered their short bets that had built up over the last year, influenced by the yen's rising volatility and shifting market dynamics, as many investors seek alternatives to the yen, traditionally favored for carry trades due to its low interest rates.
Source: YAHOO