Currency Options Trading Volume Drops Among Tokyo-Based Banks

BANKS

Bank-to-bank trading in currency options has dropped significantly in Tokyo due to the yen's sharp appreciation against the U.S. dollar, dealers say. Japanese exporters usually try to protect themselves against changes in exchange rates by buying forward dollar-selling contracts or put options when the U.S. dollar is expected to drop against the yen but the speed of the fall caught many active players off their guard.

"My perception is that in March and April, the volume of options trading in the

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