Yen threatened by Japan insurers unwinding dollar/yen hedging positions
While foreign hedge funds have been driving down the value of the yen, now Japan insurers may strengthen the trend
Japanese life insurance firms have started to unwind their dollar/yen hedges in the wake of the yen's sharp depreciation over the last month, according to market sources.
The Japanese yen has plunged by more than 12% against the dollar since November last year, accelerated in part by the Bank of Japan's recent decision to increase its target inflation rate from 1% to 2%. The easing crisis conditions in Europe and the avoidance of the US financial fiscal cliff were also cited as factors leading
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