Hedge Funds Slash Yen Shorts Amid US-Japan Stabilization Efforts

Hedge funds significantly reduced their short positions on the yen in response to coordinated efforts by US and Japanese officials. According to data from the Commodity Futures Trading Commission, leveraged funds cut their net short yen positions by roughly half to 63,600 contracts as of August 4.

This represents a sharp retreat from June's numbers, when bearish bets swelled to nearly 138,000 contracts, the largest net short position since 2007. The reduced bearish bets on the yen come after joint efforts by US and Japanese officials helped stabilize the currency.