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Yen Roars Back as Hedge Funds Cut and Run From Big Macro Short

  • Japan’s currency is best-performing in world on Thursday
  • Shorting the yen had become a stretched global macro trade
Updated on

The yen catapulted higher against every currency in the world as lowered expectations for rate hikes caused hedge funds to cover short bets from one of the biggest global macro trades of the year.

Japan’s currency jumped on Thursday by as much as 1.6% to 134.35 per dollar, its strongest in a month, after data showed the US economy shrank for a second straight quarter, raising chances of a recession.