Optimism surrounding the Japanese yen is increasing among hedge funds and asset managers as demand for hedging against potential declines of the U.S. dollar reaches a five-year high. This surge in demand is attributed to the tariff policies of the Trump administration, which are perceived to threaten U.S. economic exceptionalism and undermine the strength of the dollar. A recent Bloomberg survey indicates that approximately 80% of respondents expect further declines in the dollar over the next month, marking the highest level of concern since the survey began in 2022. Additionally, the options market reflects this sentiment, with an index measuring three-month risk reversals on the dollar against major peers dropping to a five-year low, indicating heightened trader demand for hedging against dollar depreciation.