Hedge Funds Cut Bullish Yen Bets as BOJ Held Back on Rate Vows
Hedge funds slashed their bets on a stronger yen after the Bank of Japan held back from providing markets with definitive vows for higher interest rates.
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Hedge funds slashed their bets on a stronger yen after the Bank of Japan held back from providing markets with definitive vows for higher interest rates.
The yen headed for its biggest daily gain in more than two weeks after Finance Minister Satsuki Katayamaโs latest comments on the currency kept traders on alert for the risk of intervention.
The yen is vulnerable to sharp moves and further declines over the next week, with a three-day holiday in Japan set to reduce trading liquidity and investors disappointed that the central bank didnโt offer stronger guidance on the pace of future interest rate hikes.
The yen extends its drop against the dollar after BOJ Governor Ueda gave mixed signals about future interest-rate hikes. The central bank lifted interest rates by a quarter point to 1.25%. The US is expected to hold off announcing new tariffs on China and other trading partners until after next weekโs summit between President Trump and President Xi Jinping. Bilfinger CEO Thomas Schulz discusses the company's trimmed outlook and planned job cuts. Paul Donovan of UBS Global Wealth Management discusses the BOJ rate decision. (Source: Bloomberg)
The yen dropped after the Bank of Japanโs decision to hike rates as a split vote sent bearish signals, strategists said. The Japanese currency fell as much as 0.5% after the central bank raised its benchmark interest rate by a quarter percentage point to 1.25%.
Treasury Secretary Scott Bessent challenged traders to test his resolve on boosting Japanโs currency, saying when he wades into markets these days heโs effectively doing so with inside information. David Finnerty explains. (Source: Bloomberg)
The yen extends its recent rally, trading beyond 154 per dollar. Bloomberg's Mark Cranfield has the latest. (Source: Bloomberg)
The dollar slumped to start September as traders cut bets on a Federal Reserve rate hike this month and a surging yen rippled across global currency markets.
Guy Johnson, Tom Mackenzie and Paul Dobson break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." (Source: Bloomberg)