SINGAPORE: Short positions in Malaysia's ringgit reached their largest since the 2008-09 global financial crisis over the past two weeks as investor sentiment towards most emerging Asian currencies remained pessimistic, a Reuters poll found on Thursday.
Long positions in the Chinese yuan fell to a near five-month low after the central bank on Nov. 21 surprisingly cut interest rates for the first time in more than two years.
Bearish bets on the ringgit rose to their highest since September 2008, according to the survey of 16 currency analysts and traders conducted between Tuesday and Thursday.
The ringgit fell to 3.4475 per dollar on Thursday, its weakest since February 2010, on sustained concerns that lower oil prices may hurt economic fundamentals of Malaysia, a net oil exporter.
Short positions in the Taiwan dollar touched the largest since February 2009. The island's currency fell to its lowest in more than four years on fears that local exporters were losing competitiveness because of the weakness of the Japanese yen and South Korean won.
The Singapore dollar built up its biggest short position since March 2009. The city-state's currency hit its weakest since November 2011 with the economy slowing and inflation easing.
Views on Indonesia's rupiah were at their most pessimistic since early October as the currency touched a six-year low on dollar demand from local corporates.
Bullish bets on the yuan slid to their smallest since mid-July. The renminbi touched a 3-1/2 month low against the dollar as the central bank set a weaker midpoint, and amid concerns over a slowdown in the economy.
Emerging Asian currencies lost ground as the dollar rose to its highest since March 2009 against a basket of six major currencies on solid US economic data.
The won pared some short positions, which were the largest since October 2008 two weeks ago.
India's rupee was the only emerging Asian currency, in which long positions expanded. On Tuesday, the Reserve Bank of India said it could cut interest rates "early next year", raising hopes of an acceleration in economic growth.
Short positions in the Philippine peso fell on foreign demand for shares and as remittance inflows from Filipino workers overseas increased before the year-end.
The Reuters survey is focused on what analysts 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 Thai baht.
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 US dollars. The figures included positions held through non-deliverable forwards (NDFs).
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