Japanese Life Insurers Cut Bullish Yen Hedges to 14-Year Low (1)

Japanese life insurers cut protection for their foreign assets against a stronger yen to a fresh 14-year low, signaling subdued expectations of a sustained rally in the nation’s currency.

Nine of Japan’s biggest life insurers collectively lowered bullish yen wagers tied to their foreign investment holdings to 44.4% at the end of the fiscal half in March from 45.2% six months earlier, according to a Bloomberg News analysis of their earnings reports.

While the Trump administration’s unpredictable policy making has stoked foreign exchange market volatility, that wasn’t enough to stop a three-year decline in yen hedging. The Bank of ...