Skip to content
Subscriber Only

Hedge Funds Go Long on Yen as Team Abe's Troubles Deepen

General Images Of Japanese Yen and US Dollars As Yen Extended Gains Against Dollar
Photographer: Tomohiro Ohsumi/Bloomberg

Hedge funds have been betting against the yen for almost the entire period since Donald Trump’s victory in the 2016 U.S. presidential election stoked expectations for tax-cut fueled American growth and higher interest rates. But the whiff of troubles surrounding Prime Minister Shinzo Abe’s cabinet, which has overseen an historic weakening in the yen, might have peaked their interest. Recent data on leveraged currency bets -- a key hedge fund strategy -- show net wagers are in favor of yen strength for the first time since last spring.