Hedge Funds, Asset Managers Boost Bullish Yen Bets Amid Tariffs

Yen optimism is spreading among hedge funds and asset managers as US tariffs drive haven demand at a time when traders are reassessing the Bank of Japan’s interest rate hike path.

Leveraged funds were the most bullish since January 2021 and asset managers increased their long bets in the week through April 8 to the most positive on record in Commodity Futures Trading Commission data going back to 2006. The yen rose 2.3% against the dollar last week and hit its strongest level since September on Friday.

The yen has been one of the best performers against the dollar ...