Currency speculators increased bets on the US dollar to their highest since June 2010, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net long position rose to $14.38 billion in the week ended September 27, from net longs of $9.61 billion a week earlier.
Investors have been long the dollar for the last three weeks. Reflecting persistent concerns about the euro zone debt crisis, speculators raised their net short euro position to 82,473 contracts from shorts of 79,460 the previous week. Net short sterling contracts rose to 64,010 from 59,755 in the prior week.
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.
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