Hedge Funds Pared Back Yen Wagers Before BOJ Fueled Surge: Chart

Hedge funds and other large speculators that dialed back bets on the yen in the futures market are regretting it. Speculators cut wagers the yen would strengthen to a net 34,958 contracts in the week ended July 26, almost half what it was just three weeks earlier and the lowest since May. The Bank of Japan’s decision on July 29 to keep its key monetary tools unchanged and mount a comprehensive review of its policy framework sent the currency surging by the most since June’s Brexit vote.

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