After the US and Japanese authorities collaborated to stabilize the yen, hedge funds drastically reduced their shorting bets. According to data released by the Commodity Futures Trading Commission on Friday, as of August 4, leveraged funds in the futures and options market had cut their net yen positions by about half to 63,600 contracts. This means that short positions showed a sharp retracement compared to the end of June. At that time, positions betting on a further depreciation of the yen surged to nearly 138,000 contracts, the highest since 2007. Influenced by the widening spread between the US and Japan, the yen once fell to its lowest level since 1986, spurring speculators to increase their shorting efforts. After the US and Japanese governments joined forces to intervene, traders began to reduce their short positions, and the yen also rebounded. Although the Bank of Japan kept the benchmark interest rate unchanged, the overnight index swap showed that the probability of it raising interest rates in September was about 60%. Non-farm payrolls data released by the US on Friday that fell short of expectations also put pressure on the US dollar, reducing market bets on the Federal Reserve's tightening monetary policy. Traders currently believe that the probability that the Bank of America will raise interest rates next month is about 40%, far lower than the 60% rate before the report was released.

After the US and Japanese authorities collaborated to stabilize the yen, hedge funds drastically reduced their shorting bets. According to data released by the Commodity Futures Trading Commission on Friday, as of August 4, leveraged funds in the futures and options market had cut their net yen positions by about half to 63,600 contracts. This means that short positions showed a sharp retracement compared to the end of June. At that time, positions betting on a further depreciation of the yen surged to nearly 138,000 contracts, the highest since 2007. Influenced by the widening spread between the US and Japan, the yen once fell to its lowest level since 1986, spurring speculators to increase their shorting efforts. After the US and Japanese governments joined forces to intervene, traders began to reduce their short positions, and the yen also rebounded. Although the Bank of Japan kept the benchmark interest rate unchanged, the overnight index swap showed that the probability of it raising interest rates in September was about 60%. Non-farm payrolls data released by the US on Friday that fell short of expectations also put pressure on the US dollar, reducing market bets on the Federal Reserve's tightening monetary policy. Traders currently believe that the probability that the Bank of America will raise interest rates next month is about 40%, far lower than the 60% rate before the report was released.