Hedge funds turned net long the yen for the first time since 2021

Hedge funds have turned bullish on the yen for the first time since 2021 after sharp swings in foreign exchange markets led to a surge in a popular yen trade.
According to the latest data from the U.S. Commodity Futures Trading Commission (CFTC) for the week ended Aug. 13, leveraged funds held about $7 million worth of 86 contracts betting that the yen would appreciate, and speculators were generally bracing for a rise in the yen, marking a sharp shift from the extremely negative sentiment traders had seen in early July. Speculative traders held about 20,000 contracts betting on a weaker yen a week ago.
These traders have been reducing their short bets since early July, when the yen has rallied about 9 per cent against the dollar, outperforming all other G10 currencies.