Key Takeaways
- • The dollar-yen trading range narrowed to about 2.87 yen in October, its tightest level in roughly four and a half years.
- • Speculators' net short yen position shrank to about 14,000 contracts as of October 27, according to CFTC data.
- • Hedge funds that drove yen weakness in the first half of 2026 pulled back their short bets, reducing directional pressure on the currency.
Summary
The dollar-yen rate's October trading range contracted to about 2.87 yen, the narrowest in roughly four and a half years, as hedge funds scaled back the positions that had driven yen weakness earlier in 2026. CFTC data show that speculators' net short yen position fell to about 14,000 contracts as of October 27. The reduction in net short exposure indicates that leveraged investors have largely unwound the bearish yen positioning built up in the first half of the year. The source material available for this story is limited, and it does not provide further detail on price levels, fund names, or the policy backdrop behind the move.
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