Hedge funds have halved their net short positions on the Japanese yen following a historic coordinated intervention by US and Japanese authorities. Net short contracts fell from approximately 138,000 at the end of June to around 63,600 by August 4, representing a reduction of 74,440 contracts. Japan purchased an estimated 75 to 85 billion dollars worth of yen over two days in late July and early August, the largest intervention since 2011. The explicit backing from Washington, including a public statement from Treasury Secretary Scott Bessent, marked the first transatlantic coordination on currency markets in over fifteen years.
Source: Read the original article
