Yen rise triggers PRDC hedging


The yen hit its highest level against the dollar since August 1995 on March 17, spurring activity by banks rushing to hedge exposures to power-reverse dual currency notes (PRDCs) and other similar structured products, say dealers.

The currency touched Yen95.76 against the dollar on March 17, up from Yen111 at the beginning of the year. It subsequently closed at Yen99.71 on March 27. The sharp appreciation has left dealers jostling to rebalance PRDC hedges in the yen swaps and options markets.


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free registration? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here