Day Traders in Japan Bail Out of Bullish Lira Bets Amid Plunge
- Japan’s bullish retail bets have slumped 44% from recent peak
- Turkish lira slumped to record low against the yen this week
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Japan’s normally risk-loving day traders are abandoning the Turkish lira in droves, with some forced to sell their positions as the currency plunged to a record low this week.
Retail investors cut their bullish bets on the Turkish currency to the lowest since February, some 44% below a mid-October peak, according to the latest data from Tokyo Financial Exchange Inc. About 30% of recent order flow was forced selling, which picked up when the lira fell below 9 yen, said Takuya Kanda, general manager at Gaitame.com Research Institute in Tokyo.