Investors reduced their long bets on overall emerging Asian currencies, turning bearish on the South Korean won and the Taiwan dollar, as a devastating earthquake and nuclear crisis in Japan dented appetite for riskier aassets, a Reuters poll showed They reversed long bets on the won this month for the first time since July last year, and on the Taiwan dollar for the first time since June 2010, the monthly survey showed.
Investors also lowered long bets on the Chinese yuan, the Singapore dollar and the Philippine peso, according to the poll. On Wednesday, Asian currencies rebounded in line with regional stock markets as investors reduced dollar positions, but market players were doubtful over sustainability of the gains as Japan's nuclear crisis appeared to be worsening.
The poll covered 10 currency strategists to estimate how the market was positioned in eight Asian currencies against the dollar.
The survey measures estimates of the net long or short position in a currency on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long on dollars. The figures include positions held through non-deliverable forwards (NDFs).
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