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Hedge funds cut bullish yen positions after BOJ rate signals
In the week to September 22, leveraged funds reduced their net long yen exposure by nearly 80%, according to CFTC data cited by Bloomberg.
Hedge funds have sharply reduced bullish yen positions after the Bank of Japan raised interest rates but signaled caution about how quickly further tightening could follow, Bloomberg reported. The outlet cited Commodity Futures Trading Commission positioning data showing leveraged funds held a net long yen position equivalent to about JPY55.9 billion, or $355 million, in the week to September 22.
That represented a reduction of almost 80% versus the previous week, when hedge funds had shifted to a net bullish yen stance for the first time since mid-2025. In contract terms, leveraged funds cut their net yen position by 15,598 contracts to 4,472, while asset managers also trimmed their net long exposure, cutting 12,323 contracts to 42,498.
The repositioning followed the BOJ’s September 17 decision to raise rates as expected. Markets viewed the central bank’s accompanying signals as offering limited evidence of an imminent acceleration in monetary tightening, and the yen weakened after the decision, reaching around JP157.39 per dollar.