Hedge Funds Revive Yen-Weakness Trades Ahead of Japan Vote

Hedge funds are reviving bets against the yen, positioning for renewed weakness as Japan heads into a pivotal election this weekend.

Dollar-yen returned to the spotlight Wednesday, touching a two-week high as it climbed toward the mid 156-157 range, after Prime Minister Sanae Takaichi pointed over the weekend to the benefits of a weaker currency ahead of the Feb. 8 vote. She called the snap election to consolidate her leadership, with polls showing her party on track for a standalone majority — a result that could give her greater latitude to pursue fiscal stimulus and add to Japan’s already heavy debt load.