Saturday, 11 August 2012 02:10
NEW YORK: Currency speculators bets in favor of the US dollar were unchanged in the latest week, according to data from the Commodity Futures Trading Commission released on Friday.
The value of the dollar's net-long position stood at $13.65 billion in the week ended Aug. 7, unchanged from the previous week when it was at its lowest level since May 1.
The data reflects positions in the days following comments made by European Central Bank President Mario Draghi who said the bank would do whatever it takes to save the euro and may buy bonds of stressed countries to bring down borrowing costs.
The euro on Monday hit a one-month high of $1.2443 according to Reuters data.
However, the common currency was headed for its first weekly drop against the dollar and yen in three weeks on Friday as investors refocused on uncertainty about potential ECB action to contain the debt crisis and deteriorating growth in the euro zone.
That performance of the euro will likely be reflected in data collated Aug. 14 and released Aug. 17.
To be short a currency is to bet it will decline in value, while being long is a view its value will rise.
The Reuters calculation for the aggregate US dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars.
Copyright Reuters, 2012