Hedge funds and asset managers are piling into bullish yen positions at a record pace, as renewed US tariffs under President Donald Trump spark a flight to safe-haven assets and cast doubt over the Bank of Japan’s (BOJ) tightening trajectory, according to a report by Bloomberg.

In the week ending 8 April, leveraged funds were the most bullish on the yen since January 2021, while asset managers increased their long positions to the highest level on record, according to Commodity Futures Trading Commission (CFTC) data going back to 2006. The yen surged 2.3% against the US dollar last week, touching its strongest level since September.

The resurgence in yen demand comes amid escalating fears that Trump’s trade policies — including higher duties on major economies like China — could derail global growth, prompting a broad shift into defensive assets. Currency traders have also turned increasingly negative on the US dollar, with net short positions at their highest since October.