(Reuters) – Short positions on most Asian currencies persisted over the past two weeks, a Reuters poll showed, as an escalating trade standoff between the United States and China saw investors holding little faith in regional risk assets.
All 14 participants in the poll were bearish on the Chinese yuan as the country threatened to retaliate against fresh American tariffs on its exports. May was the worst month for the currency in eleven.
Weak - Readings - China - Result - Trade
Weak economic readings from China, as a result of the trade conflict, have also dampened the outlook for most regional players that depend heavily on the world’s second largest economy as a trading partner.
Bearish positions on the South Korean won were steady, while short bets on the Taiwan dollar were at their strongest in nearly 3-1/2 years. All 14 participants in the poll were bearish on both currencies.
US - Scrutiny - Chinese - Technology - Majors
U.S. scrutiny of Chinese technology majors, in addition to a wider sell-down in technology stocks has further sullied demand for the electronic components made and exported by the two countries.
Bullish bets on the Indian rupee receded as investors perceived further headwinds to the import-heavy economy from Sino-U.S. trade tensions.
Trade - Treatment - India - United - States
The recent ending of preferential trade treatment for India by the United States also came as a major blow to positions on the rupee, adding to worries over sustainable economic growth as well as a shortage...
Wake Up To Breaking News!