Investors trim bearish bets on most Asian currencies - Reuters poll
According to the latest Reuters poll, investors’ confidence in most Asian currencies improved slightly, in the wake of a weaker US dollar and easing US-China trade tensions.
Key Findings:
“Bearish bets on the Chinese Yuan were sharply reduced in the wake of the latest round of Sino-U.S. trade talks, the survey showed. Short positions fell to their lowest since late-May, when bets on the Chinese currency were slightly bullish.
The poll of 10 market participants also showed that investors trimmed their short positions on four other Asian currencies.
The poll showed short positions in the Philippine peso narrowed to levels last seen in mid-May.
Short positions on the Thai baht also hit their lowest since May-end, bolstered by hawkish comments from the central bank governor.
Export-driven South Korean won and Taiwan dollar saw bearish positions fall to their lowest since May and mid-July, respectively.
However, investors raised short positions on the Indonesian rupiah, Indian rupee and Singapore dollar.
The Indonesian currency has been hit with a combination of a rising trade deficit, worsening macro trade conditions and lower growth outlook.
Short positions on the Indian rupee, the worst performing Asian currency so far this year, also rose.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
