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Hedge funds pivot to yen options ahead of US inflation data

Funds are leaning more on currency options as uncertainty rises around the yen and whether the dollar will extend gains against Japan before the US inflation release.

Reported · Written up by our desk · Hedge Funds

Hedge funds and other currency investors are increasing their use of yen options to manage uncertainty ahead of key US inflation data, according to a report by Bloomberg cited by Hedgeweek.

The shift reflects heightened market focus on the path of the yen and the possibility that the US dollar could keep strengthening versus Japan.

Traders are split on direction, with views diverging on whether further dollar upside is likely against the Japanese currency leading into the inflation reading.

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