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Yen Shorts Hit Year High Amid FX Calm, Carry Trade Appeal

By Barry Stearns

4/3, 19:18 EDT
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  • Leveraged funds and asset managers have significantly increased their short positions in the yen, reaching the highest level since April 2022, as global FX volatility has notably decreased since its peak in September 2022.
  • The decline in currency volatility has made carry trades more attractive, contributing to the bearish sentiment on the yen despite Japan's recent interest rate hike.