Currency speculators decreased bets against the US dollar in the latest week, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net short position fell to $14.62 billion in the week ended August 30, from $16.27 billion a week earlier.
Speculators cut long bets in the Japanese yen, pound sterling, and Swiss franc in the latest week. They also reversed bets in favour of the euro with a small net short position of 384 contracts. Long positions in commodity-linked currencies such as the Australian and Canadian dollars increased, the data showed.
To be short a currency is to bet it will decline in value, while being long is a bet 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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