BoJ policy shift sends traders to hedge downside yen moves

- By Joe Parsons
- @Joe_Parsons416
- 22 Dec 2022

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The Bank of Japan’s (BoJ) recent hawkish shift in monetary policy has resulted in a flurry of foreign exchange options trades, as the market looked for protection against downward moves in the dollar/yen spot rate.

The rate fell from 136.91 at close on December 19 to 132.331 the following day, after the announcement that the central bank would adjust its long-standing yield curve control measure – an indication that a rate rise might be on its way.

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