Hedge Funds Start to Split on Long-Yen Trades Before Fed and BOJ
- Some short-term funds squared up long-yen positions Monday
- Others are looking to sell dollar-yen ahead of Fed decision
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A divergence is emerging among leveraged funds on their positions in the yen ahead of the Federal Reserve and Bank of Japan meetings that will dictate the currency’s near-term trajectory.
The yen’s dramatic start to the week, which saw it briefly surge beyond the closely watched 140-per-dollar, has triggered a rethink for investors. Some short-term funds locked in profits ahead of the monetary policy decisions this week, while others are looking to increase their long-yen positions on bets for a large interest-rate cut by the Fed.