AIRLINK 60.70 Increased By ▲ 2.20 (3.76%)
BOP 6.27 Increased By ▲ 0.01 (0.16%)
CNERGY 4.18 Increased By ▲ 0.22 (5.56%)
DFML 16.27 Increased By ▲ 0.26 (1.62%)
DGKC 67.25 Decreased By ▼ -1.30 (-1.9%)
FCCL 17.32 Decreased By ▼ -0.53 (-2.97%)
FFBL 25.70 Increased By ▲ 0.20 (0.78%)
FFL 9.24 Increased By ▲ 0.04 (0.43%)
GGL 9.96 Increased By ▲ 0.16 (1.63%)
HBL 114.50 Increased By ▲ 0.50 (0.44%)
HUBC 112.48 Increased By ▲ 0.63 (0.56%)
HUMNL 6.60 Increased By ▲ 0.07 (1.07%)
KEL 4.44 Increased By ▲ 0.07 (1.6%)
KOSM 4.75 Increased By ▲ 0.16 (3.49%)
MLCF 37.92 Increased By ▲ 0.12 (0.32%)
OGDC 124.35 Decreased By ▼ -1.09 (-0.87%)
PAEL 22.60 Increased By ▲ 0.05 (0.22%)
PIAA 11.20 Increased By ▲ 0.07 (0.63%)
PIBTL 6.45 Increased By ▲ 0.27 (4.37%)
PPL 107.70 Decreased By ▼ -1.30 (-1.19%)
PRL 27.90 Increased By ▲ 1.09 (4.07%)
PTC 10.80 Increased By ▲ 0.25 (2.37%)
SEARL 53.00 Increased By ▲ 0.30 (0.57%)
SNGP 66.45 Increased By ▲ 0.10 (0.15%)
SSGC 11.33 Increased By ▲ 0.31 (2.81%)
TELE 7.23 Increased By ▲ 0.09 (1.26%)
TPLP 11.95 Decreased By ▼ -0.05 (-0.42%)
TRG 78.01 Increased By ▲ 1.56 (2.04%)
UNITY 22.01 Increased By ▲ 1.60 (7.84%)
WTL 1.31 No Change ▼ 0.00 (0%)
BR100 6,509 Increased By 68.6 (1.06%)
BR30 22,300 Increased By 201.1 (0.91%)
KSE100 63,306 Increased By 490.1 (0.78%)
KSE30 21,296 Increased By 162.7 (0.77%)
Markets

Most Asian FX bears firm; short bets on yuan at near 1-year high

  • Market participants were the most bearish on the Indonesian rupiah since October.
Published April 8, 2021

Bearish bets on most Asian currencies firmed, a Reuters poll showed on Thursday, as signs of an economic recovery in the United States and rising coronavirus cases across the region dented the appeal of risk-sensitive assets.

Short bets on the Chinese yuan were at their highest since May, while those on the Philippine peso and the Thai baht inched up to remain at a near one-year high, a poll of 11 respondents showed.

Investors had turned short on all Asian currencies for the first time in a year last month as economic indicators increasingly suggest a recovery in the United States will outpace other developed nations, boosting US Treasury yields and the dollar.

The greenback enjoyed its best performance in three years in the first quarter of 2021 and has continued to rise steadily since.

The poll responses, however, came before the Federal Reserve's latest minutes on Wednesday. The central bank reaffirmed its loose monetary policy stance but offered no new catalysts, which took some shine off yields and the dollar.

Fresh waves of COVID-19 infections and record deaths in several Asian countries have also led to uncertainty in emerging market currencies.

The Indian rupee saw short positions rise to their highest level since May.

The Reserve Bank of India (RBI) on Wednesday kept interest rates at record lows but committed to a massive government bond purchase programme, following which the rupee suffered its worst day in more than one-and-a-half years.

"One possible catalyst for yesterday's decision could be India's daily case numbers of COVID-19, which have taken India to the unenviable position of the world's most infected country on a daily basis," said Robert Carnell, regional head of research, Asia-Pacific at ING.

"Low official and market rates have not done much to bring down bank lending rates, so it might be a push to suggest that this latest move will offset the COVID-19 impact by boosting lending and real activity."

Market participants were the most bearish on the Indonesian rupiah since October.

Earlier this week, a senior official of Indonesia's central bank said the currency was "too cheap" against the dollar and had been weakened by a spillover effect of US fiscal policies.

The Asian currency positioning poll is focused on what analysts and fund managers 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 the Thai baht.

Comments

Comments are closed.