Bloomberg – Hedge funds investing in Japan increased short-selling of companies sensitive to the yen’s strength as the currency surged amid the U.S. credit downgrade and concerns that Europe can’t contain its debt crisis, according to Deutsche Bank AG. (DBK)
“What we have seen is selective shorting of foreign exchange-sensitive companies increase,” said Christopher Donald, managing director and the head of global prime finance trading in Japan at Deutsche Securities Inc. in Tokyo. “If things were to worsen, some people may be looking to put on some shorts.”
