🚨 Dollar Bets Surge, Yen Nears 40-Year Low as Japan Warns of Action
• Hedge funds and FX traders aggressively bought USD call options after hawkish Fed signals and anti-inflation comments from Fed Chair Kevin Warsh.
• Strongest demand was seen in EUR/USD and GBP/USD options as markets bet US rates could stay higher for longer.
• The yen fell to 161.81 per dollar, close to its weakest level since 1986, despite the BOJ raising rates to 1%, the highest since 1995.
• Japan warned of "bold action" against speculative moves after spending a record ¥11.73 trillion on FX intervention earlier this year.