CFTC: Hedge fund sentiment for shorting the Japanese yen hits the highest level since 2007

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Jinse Finance reported that on July 7, according to CFTC data, as of the week ending June 30, hedge funds pushed net short yen positions in futures and options markets to nearly 138k contracts, the most bearish level since 2007. The yen also fell to a low not seen since 1986, breaking through the 162 yen per dollar level, sparking market expectations that Japanese authorities may intervene in the foreign exchange market. Japan's Finance Minister reiterated that authorities can take foreign exchange intervention measures at any time, while Japan had previously used a record amount of funds to support the yen from late April to May. The market believes that the widening interest rate differential between the US and Japan remains the main factor weighing on the yen, and even the Bank of Japan's recent interest rate hike has not reversed its weakness.
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