Japan’s largest life insurance companies are reportedly reducing their hedging positions against a potential yen rebound, according to a Bloomberg report. The nine biggest insurers in the country have only 47% of their foreign securities protected by derivatives, indicating their confidence that the yen will continue to weaken. This move comes as the yen has dropped 1.3% against the dollar in the past month, making it the worst performer among Group-of-10 currencies. Insurers are expected to cut their hedging positions further in the coming months, signaling their optimism about the dollar’s strength.
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