(Feb 4): Hedge funds are reviving bets against the yen, positioning for renewed weakness as Japan heads into a pivotal election this weekend. Amid a pickup in call option demand, the premium to hedge dollar-yen’s downside compared to upside over the next month, has fallen to its lowest in nearly two weeks. Takaichi’s latest remarks have added to the renewed bullishness in dollar-yen. Asset managers, often referred to as real money funds, by contrast are taking a more cautious stance amid recent volatility as they wait for greater clarity on where the pair is next headed. “Real money is largely sidelined, using options for protection rather than committing to a clear USD/JPY direction,” said Ivan Stamenovic, head of Asia-Pacific G-10 currency trading at Bank of America Corp.

Source: The Edge Markets February 04, 2026 07:26 UTC