Carry Trade That Blew Up Markets Is Attracting Hedge Funds Again
- Yen shorts have risen around 30 to 40% in past week, ATFX says
- Any hint of BOJ keeping rates on hold may embolden yen sellers
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A popular yen-centered carry trade that blew up spectacularly two weeks ago is staging a comeback.
Japan’s currency has weakened more than 5% against the dollar since Aug. 5, when a cocktail of hawkish Japan monetary policy moves, jitters around US earnings and a feeble jobs report catapulted the yen to a seven-month high.