Hedge funds are increasingly positioning for a potential rebound in the Japanese yen, as renewed intervention signals from policymakers drive activity in currency derivatives markets, according to a report by Bloomberg.
Demand for downside protection in USD/JPY has picked up notably after the pair moved beyond the 160 level, a threshold that has historically triggered official action. Traders report a surge in interest for short-dated put options, which benefit from a decline in the dollar again...
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