Hedge funds are ramping up bullish wagers on the Japanese yen through options trades after Bank of Japan officials signalled they remain open to further rate hikes this year, despite political uncertainty in Tokyo, according to a report by Bloomberg.

Options data from CME Group show heavy activity in dollar-yen puts, particularly contracts expiring in October with a strike at 142.35, which accounted for more than a fifth of total put volume on Tuesday. These positions profit if the yen strengthens and pushes the pair below the strike. Dollar-yen ended the day at 147.31.

The shift comes after yen weakness earlier in the week, triggered by Prime Minister Shigeru Ishiba’s resignation announcement. While concerns linger over Japan’s fiscal outlook, hedge funds are now betting policy tightening could push dollar-yen below 145 in the near term.