Investors turned bullish on most emerging Asian currencies, as prospects of a potential end to U.S. interest rate hikes led to weakness in the greenback and triggered a rush into riskier assets in the region, a Reuters poll showed on Thursday.<\/p>\n
Bullish bets on South Korean won, Taiwanese dollar, and Philippine peso were at their highest since Feb. 9, while long positions on the Singapore dollar and Indonesian rupiah stood at a four month high, the fortnightly survey of 12 respondents showed.<\/p>\n
Market participants are betting on prolonged weakness in the U.S. dollar, taking cues from a spate of economic data that reinforced optimism that the U.S. Federal Reserve is probably done raising interest rates this cycle, with markets even anticipating a cut in mid-2024.<\/p>\n
The\u00a0dollar index<\/a><\/span>, which measures the U.S. currency against six rivals, has lost nearly 0.6% so far in November, helping emerging Asian currencies recover some ground.<\/p>\n Poon Panichpibool, a markets strategist with Krung Thai Bank, however, said there is still a possibility of a rebound in the dollar depending on risk of data in the U.S. coming in stronger than expected.<\/p>\n “The dollar could edge higher in the third and fourth quarter of 2024, when markets would start pricing in political risks arising from a presidential election in the U.S., though, dollar weakness could prolong until the third quarter of 2024,” Panichpibool said.<\/p>\n Back in Asia, the Taiwan dollar has strengthened over 3.5% so far in November, snapping a seven-month losing streak. The unit is set log its best month in a year.<\/p>\n Increased political uncertainty in Taiwan has led to volatility in the local currency, with two main opposition parties naming their vice presidential candidates after talks about running a joint ticket to take on the ruling party failed.<\/p>\n The Korean won, too, has performed considerably well, adding over 4% in value. The unit is set log its best month since last November.<\/p>\n Investors, however, remained bearish for the Indian rupee, Chinese yuan, and the Malaysian ringgit despite an improvement in sentiment.<\/p>\n “I think people, including myself, are not confident about the economical recovery in China, though I still make a call that China’s economy has already passed the worst point but remains full of uncertainty going forward,” Panichpibool said.<\/p>\n Investors were most bearish on the Malaysian ringgit among the pack. Confidence in the local unit has faltered lately, amid lingering uncertainty around demand for palm oil and other commodities.<\/p>\n The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht.<\/p>\n The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long U.S. dollars.<\/p>\n The figures include positions held through non-deliverable forwards (NDFs).<\/p>\n The survey findings are provided below (positions in U.S. dollar versus each currency):<\/p>\n DATE\u00a0USD\/CNY<\/a><\/span>\u00a0USD\/KRW<\/a><\/span>\u00a0USD\/SGD<\/a><\/span>\u00a0USD\/IDR<\/a><\/span>\u00a0USD\/TWD<\/a><\/span>\u00a0USD\/INR<\/a><\/span>\u00a0USD\/MYR<\/a><\/span>\u00a0USD\/PHP<\/a><\/span>\u00a0USD\/THB<\/a><\/span><\/p>\n 30-Nov-23 0.12 -0.05 -0.07 -0.05 -0.13 0.63 0.73 -0.10 -0.1<\/p>\n 16-Nov-23 0.77 0.49 0.38 0.77 0.63 0.82 1.14 0.38 0.28<\/p>\n 02-Nov-23 1.32 1.18 0.74 1.44 1.31 1.35 1.33 0.96 0.85<\/p>\n 19-Oct-23 1.02 1.16 0.84 1.06 1.06 1.21 0.78 0.89 0.67<\/p>\n 5-Oct-23 1.17 1.25 0.81 1.00 1.25 0.92 1.08 0.75 1.03<\/p>\n 21-Sep-23 1.29 0.94 0.61 0.84 0.98 1.00 1.03 0.64 0.83<\/p>\n 7-Sep-23 1.28 1.01 0.30 0.65 0.95 0.79 0.86 0.55 0.57<\/p>\n 24-Aug-23 1.42 0.79 0.34 0.77 1.00 0.84 1.18 0.92 0.50<\/p>\n 10-Aug-23 0.74 0.68 0.28 0.60 1.12 0.62 0.98 0.75 0.49<\/p>\n 27-Jul-23 0.77 0.19 -0.22 -0.14 1.17 -0.06 1.15 0.14 0.15<\/p>\n <\/p>\n Source: https:\/\/www.investing.com\/news\/stock-market-news\/investors-bullish-on-most-asian-fx-as-us-interest-rate-bets-shift-reuters-poll-3246431<\/p>\n","protected":false},"excerpt":{"rendered":" Investors turned bullish on most emerging Asian currencies, as prospects of a potential end to U.S. interest rate hikes led to weakness in the greenback and triggered a rush into riskier assets in the region, a Reuters poll showed on Thursday. Bullish bets on South Korean won, Taiwanese dollar, and Philippine peso were at their […]<\/p>\n","protected":false},"author":1,"featured_media":1154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpautop"],"translation":{"provider":"WPGlobus","version":"2.10.10","language":"fr","enabled_languages":["en","nl","es","sv","fr"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"nl":{"title":false,"content":false,"excerpt":false},"es":{"title":false,"content":false,"excerpt":false},"sv":{"title":false,"content":false,"excerpt":false},"fr":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"\r\n