What caused the surge in the JPY this morning? Traders say a there is a rumor that a troubled hedge fund liquidated a large position.
Nearly every JPY surge is coupled with similar rumors since JPY has been the funding currency of choice (borrow cheap yen and sell them to buy higher-yielding emerging market assets, for example) for hedge funds the last dozen years…
USD/JPY fell to 83.72 before stabilizing.
