Hedge funds turned bullish on the yen for the first time since 2021, after big swings in the foreign exchange market led to a surge in a popular yen trade. Leveraged funds held 86 contracts worth about $7 million betting that the yen would appreciate, and speculators in general were bracing for a rise in the yen, marking a sharp shift from the extremely negative sentiment traders had seen in early July, according to the latest data from the U.S. Commodity Futures Trading Commission (CFTC) for the week ending Aug. 13. Speculative traders held about 20,000 contracts betting on a weaker yen a week ago. These traders have been reducing their short bets since early July. The yen has gained about 9 percent against the dollar since early July, outperforming all other G10 currencies.