IMM speculators slash net yen short position

Currency speculators slashed their net short yen position by nearly half, as investors unwound hefty carry trades that pushed the yen to a four-year low in January, weekly data from the Commodity Futures Trading Commission showed on Friday.
In carry trades, investors borrow currencies with low interest rates such as the yen and use the proceeds to invest in higher-yielding assets in other currencies. Net yen shorts were cut to 62,886 contracts, from 114,626 shorts a week earlier.
The overall dollar position fell to a net short of $4.57 billion from $10.22 billion short contracts the previous week, according to Reuters calculations using data for the week ended Tuesday. The net dollar position is derived from the net positions of speculators in the International Monetary Market in yen, euro, British pound, Swiss franc and Canadian and Australian dollars.