Hedge Funds Bet Against Yen Ahead of BOJ June Rate Hike; 25 Basis Points Expected

Hedge funds including Fivestar Asset Management and Palinuro Capital are holding yen short positions ahead of the Bank of Japan's June policy meeting, betting the central bank's expected 25 basis point rate hike will fail to reverse yen depreciation. Market participants have largely priced in the rate increase and are now focused on whether the BOJ can sustain a tightening cycle. Simplex Asset Management plans to establish tactical short positions if the yen rebounds to around 159 per dollar.
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