Short Positions On Most Asian Currencies Drop; Dollar Momentum Seen Waning: Reuters Poll

www.oann.com | 4/30/2018 | Staff
kshama-s (Posted by) Level 3
(Reuters) – Short positions on most Asian currencies were seen unwinding over the past two weeks, a Reuters poll showed on Thursday, with traders turning skeptical of the dollar’s bull run after U.S. retail sales data came in below expectations.

Moreover, the run-up to the U.S. mid-term elections next month and related political uncertainty is also expected to weigh on the greenback, which has gained nearly 4 percent this year against a basket of currencies , thereby providing support to regional currencies.

Bets - Singapore - Dollar - Taiwan - Dollar

Bearish bets on the Singapore dollar , Taiwan dollar and the Philippine peso declined over the past two weeks, a poll of 10 respondents showed. The currencies had suffered heavy losses over the last fortnight, hurt by a confluence of factors including higher crude oil prices and brewing global trade tensions.

Short positions on the Thai baht fell to the lowest since late May. Strong economic fundamentals have bolstered sentiment for the baht, which is the best performer amongst its peers in the year so far.

Bets - Singapore - Dollar - Level - May

Bearish bets on the Singapore dollar also fell to the lowest level since late May. The export-reliant economy’s non-oil shipments rose 8 percent in September despite ongoing trade tensions.

The country’s central bank tightened monetary policy last week and had posited a strong outlook for the economy.

Bears - Won - Stakes - Level - August

Meanwhile, bears on the South Korean won hiked their stakes to the highest level since early August. The country’s central bank held its benchmark rates as expected, and said a rate hike in November was almost certain.

Global trade tensions have dampened South Korea’s economic outlook due to its close ties with China, which accounts for a bulk of the country’s exports.

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