Hedge funds upped their bets against the yen to the highest level in more than year just as the currency was in the middle of a two-week rally, according to a report by Bloomberg citing data from the Commodity Futures Trading Commission.

Hedge funds upped their bets against the yen to the highest level in more than year just as the currency was in the middle of a two-week rally, according to a report by Bloomberg citing data from the Commodity Futures Trading Commission (CFTC).

Leveraged funds boosted their net-short positions on the yen by 3,582 contracts to 58,099, the highest level seen since May 2022, according to CFTC data for the seven-day period to 11 July.

The move came in the middle of a two-week rally in the currency which saw the yen gain about 4% on the dollar, with traders unwinding a profitable carry trade as US inflation cooled faster the expected.