Hedge funds are short the yen. Hedge funds are betting that the Japanese yen is about to fall off a cliff, a trade that made money for George Soros earlier this year. Futures traders pushed net shorts, or wagers the yen will fall versus the dollar, to the highest since July 2007, according to the Commodity Futures Trading Commission. These positions contrast with the median estimate of more than 50 analysts surveyed by Bloomberg, which puts the currency at 102 per dollar at the end of the first quarter of 2014 (from 101.47 today). Everybody likes dollar-yen higher, Brad Bechtel, the managing director at Faros Trading LLC in Stamford, Connecticut, said. And everyone has it on. Stanley Druckenmiller, the founder of Duquesne Capital Management LLC, said in a Bloomberg interview in September that his firm is short some yen, while being long some Japanese stocks. (VIEW LINK)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise