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Yen Rally Broadens Past Dollar In Further Sign Big Short Is Over

  • Japanese currency has been strengthening versus euro, pound
  • Hedge funds have been rushing to covering yen shorts

The yen may be tentatively rallying against the dollar but it is roaring ahead against other major peers in another sign the worst of this year’s losses may be behind it.

The Japanese currency has jumped almost 6% against the euro since its late June trough and about 4% against the pound from earlier that month. Since a trade-weighted yen gauge bottomed on June 21, it has risen against eight of its Group-of-10 peers and is little changed versus the other two.