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Yen Trading Range Shrinks to 4.5-Year Low as Hedge Funds Slash Short Bets

The yen is experiencing an unusually prolonged period of calm in foreign exchange markets. The dollar-yen exchange rate’s monthly trading range in October was the narrowest in four and a half years…

  • Yen's monthly trading range lowest in 4.5 years, fluctuating between 156-158 yen in October.
  • Hedge funds reduced short positions to 14,000 contracts, one-eighth of June's peak.
  • Government interventions and reduced real interest rates in the U.S. support yen appreciation.

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