BoJ policy shift sends traders to hedge downside yen moves
Hedge funds and corporates rush to FX options following central bank move
The Bank of Japan’s (BoJ) recent hawkish shift in monetary policy has resulted in a flurry of foreign exchange options trades, as the market looked for protection against downward moves in the dollar/yen spot rate.
The rate fell from 136.91 at close on December 19 to 132.331 the following day, after the announcement that the central bank would adjust its long-standing yield curve control measure
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