Fear Not
A Yen Above 100? Bet Your Bottom Dollar
Japan's exporters can grow even with a stronger currency.
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Imagine a world in which the Japanese currency strengthens past the psychologically important level of 100 yen per dollar. It wouldn't be so bad.
With Prime Minister Shinzo Abe's approval rating edging toward July's low, traders are doing a U-turn on their yen bets. Hedge funds are now in favor of a stronger Japanese currency for the first time since last spring, while options traders have $160 billion in put contracts that the yen will rise to 100 or above, $30 billion more than three months ago.