Hedge Funds Slash Yen Bets Amid BOJ Rate Hesitation

Hedge funds have drastically reduced their bets on a stronger yen following the Bank of Japan's decision to hold back from providing clear signals for higher interest rates.

According to data from the Commodity Futures Trading Commission, leveraged traders held approximately ¥55.9 billion ($355 million) in bullish wagers on the yen in the week ended September 22.

This represents a nearly 80% reduction compared to the previous week, when those funds turned positive on the yen for the first time since mid-2025.