Hedge Funds Turn Bullish on Yen After Carry Trade Blow-Up.

Hedge funds have become bullish on the Japanese yen for the first time since 2021, following a blow-up of a popular yen trade caused by sharp swings in foreign-exchange markets. Speculative traders are now positioning for gains in the yen, a significant shift from their previously negative sentiment. This change in positioning comes after a rally in the yen due to bets that the Bank of Japan would continue raising interest rates. The yen has strengthened about 9% against the dollar since July, outperforming other major currencies. [Extracted from the article]