Funds go long yen for first time in four years as carry trade unwinds

Testing times: A man walks past the Bank of Japan headquarters in central Tokyo. — AFP

BY one measure, the speculative Japanese yen-funded carry trade has been completely unwound.

The latest Commodity Futures Trading Commission (CFTC) data show that hedge funds and speculators have flipped their long-standing short yen position and are now net long of the currency for the first time since March, 2021.