Investors turned bullish on the Singapore dollar during the last two weeks as they covered short positions in emerging Asian currencies, held on to their positions in the Chinese yuan, a Reuters poll showed on Thursday. Currency players became slightly bullish on the Malaysian ringgit and neutral on the South Korean won, according to the survey of 12 analysts.
They became less bearish on other emerging Asian currencies. Investors have unwound short positions in risk assets established in panic on signs that efforts to expand a euro zone rescue fund and recapitalise European banks are gaining momentum. But the yuan have not benefited from the trend much on expectations that China could use the currency's value to displeasure with a bill in Washington meant to spur Beijing to allow more appreciation.
In the previous survey published on September 29, investors had halved their bets on the Chinese currency to the lowest since August last year. The survey measures estimates of the net long or short of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long on dollars.
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