Dollar/yen move sparks options buying
The dollar/yen spot rate has had a volatile few months, surging from four-year lows to hit an eight-month high in May. It’s meant traders have been rushing to cover short positions through the options market, while hedgers have been looking at strategies to protect them against further forex volatility. Saima Farooqi reports
Heavy volatility in the dollar/yen spot rate in the past two months has sparked a flurry of activity in the options market, as market participants have rushed to cover short dollar/yen positions and unwind directional plays. The yen surged to a four-year high, reaching ¥103.70 against the dollar on April 1, before retracing and breaking through ¥114 on May 10, the first time it has breached this level in eight months.
The volatility of the dollar/yen spot rate has taken many participants by
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