Dollar-Yen Traders Turn Bullish After Jackson Hole: Chart

Investors in the options market are the most bullish in nine months on the dollar’s prospects against the yen as conviction builds that the Federal Reserve is closer to raising rates and the Bank of Japan will line up additional stimulus. One-month 25-delta risk reversals show that call options on the dollar cost six basis points more than put options, a sign more investors expect the dollar to rally than to weaken. Put options on the dollar had traded at a premium throughout this year.

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