Hedge Funds Cut Yen Shorts by Most Since Pandemic on Omicron
- CFTC data show big reduction in bearish yen wagers last week
- Haven status is yen’s major driver during uncertain times: CBA
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Hedge funds slashed their bearish yen wagers by the most in 20 months last week as the spread of omicron boosted demand for haven assets.
Leveraged funds cut net-short yen derivatives positions by 40% in the week ended Nov. 30, in the biggest net contract purchase since March 2020, according to the latest data from the Commodity Futures Trading Commission. The yen has strengthened more than 2% against the dollar since hitting a near five-year low on Nov. 24.