TOKYO: Traders upped bearish yen positions to a record high in the days ahead of the Bank of Japan’s (BoJ) policy meeting, as a weakening currency fuelled intervention risks.

Combined bets by hedge funds and asset managers on yen weakness climbed to 184,180 contracts in the week through last Tuesday, April 23, surpassing the record net short position set the week prior, according to Commodity Futures Trading Commission data going back to 2006.

Holders of yen shorts were rewarded last Friday as the Japanese currency sank 1.4% to a fresh, 34-year low 157.88 per dollar. The retreat came after the BoJ held monetary policy steady at the conclusion of its meeting, disappointing traders hoping for hawkish signals from governor Kazuo Ueda.

 - Bloomberg