Hedge Funds Bet Yen May Slide to 165 Before Intervention

Hedge funds are ignoring yen intervention warnings and wagering in the currency option markets that it may fall toward 165 to a dollar before Japanese authorities step in.

Japan’s finance minister and top currency official issued fresh warnings on Wednesday after the yen fell to its weakest level against the dollar in 18 months. Prime Minister Sanae Takaichi’s plan to call a snap election has added to expectations of further gains in dollar-yen, as investors see a renewed mandate for expansionary policies if the Liberal Democratic Party secures a majority. The pair was up 0.1% at 158.55 as of 12:25 pm HKT on Thursday after dropping 0.4% the previous day.