Hedge Funds Sold Yen Just Before Election Catapulted Japan Risk
- Speculative traders flipped to net short on yen: CFTC data
- Weekend’s election results amplify risk of yen losses
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Hedge funds turned bearish on the yen in the week before Japan’s ruling Liberal Democratic Party failed to gain majority at a general election, threatening to amplify losses in the currency.
Speculative investors switched to a net short position on the yen for the first time this month, Commodity Futures Trading Commission data for the week to Oct. 22 showed. The data came before Sunday’s election results which will now require Prime Minister Shigeru Ishiba to find a route to a stable government — even as the outcome raises questions about his own future.