WSJ – Japan’s move to weaken its currency dealt a blow to a group of fast-trading hedge funds that had been piling up profits betting on a stronger yen.
Some of these investors dumped their yen holdings Wednesday, hoping to protect recent gains. The selling helped push the yen down, enabling the Japanese government to achieve its goal of lowering its value against the U.S. dollar. After rising 10% this year, the yen dropped 3% in late Wednesday afternoon trading in New York, to 85.59 yen from 83.10 yen late Tuesday.
