Reported 4 months ago
Hedge funds are changing their approach to yen option trading, switching from bearish to bullish bets on the currency due to reports of potential policy changes by the Bank of Japan. The shift in sentiment is influenced by concerns about quantitative tightening and disappointing US economic data impacting the dollar's value. This change has led to increased demand for yen call options and higher premiums, affecting various carry trades in the market.
Source: YAHOO