Apr
07
Soaring Yen Spurs Options Hedging Even as Rally’s Scope Doubted
By-
Traders see just 20% chance of dollar below 105 yen in a month
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Yen approaches 1 1/2-year high as intervention absent
Options traders are stepping up hedges against yen gains, while seeing limited scope for the currency to rally past 105 per dollar, a level some traders are calling a threshold for Japanese intervention.
Demand for protection against yen gains has picked up as the currency reached its strongest in almost 1 1/2 years this week, breaching 108 per dollar. Japan’s currency has risen 11 percent this year amid global safe-haven demand, extending its advance this week even as as a Ministry of Finance official said authorities will act as necessary…
Soaring Yen Spurs Options Hedging Even as Rally’s Scope Doubted