Speculative Yen Short Positions Remain Limited—Concerns Over Yen Carry Trade Unwinding Are Contained
Analysts say speculative yen short positions remain limited, easing concerns over a large-scale yen carry trade unwind despite recent market volatility and potential BOJ rate hikes.
The USD/KRW exchange rate hit a seven-month high at 1,470 won, but FX options data show continued bearish sentiment on the won, with risk reversals staying positive and analysts noting further upside risk, though breaking above 1,480 won remains challenging amid volatility and potential intervention by authorities.
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Despite Touching 1,470 Won, FX Options Market Still Sees Bearish Outlook for Korean Won
The USD/KRW exchange rate hit a seven-month high at 1,470 won, but FX options data show continued bearish sentiment on the won, with risk reversals staying positive and analysts noting further upside risk, though breaking above 1,480 won remains challenging amid volatility and potential intervention by authorities.
Dollar-Won Currency Option Market Sentiment Shifts - Bearish Bets Emerge After Years
Dollar-won currency option market shows shift in sentiment as risk reversal turns negative for first time in years, indicating growing bets on won appreciation amid recent exchange rate decline.
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