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Investors turn short on most Asian currencies including Rupee, cut long bets on yuan sharply

Positioning data shows hedge funds paring net short-dollar positions to $29 billion last week.

March 11, 2021 / 15:54 IST
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Investors cut long bets sharply on the Chinese yuan while turning short on most other Asian currencies, a Reuters poll showed, as US economic growth and rising Treasury yields bolstered the dollar.

Expectation that the US economic recovery will far outpace the rest of the world has seen Treasury yields on the rise and is giving the dollar an added boost, sapping appetite for emerging market currencies and bonds that traditionally yield more though are considered riskier.

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Positions on the yuan have remained long since July last year as the world's second-largest economy emerged from the crutches of the pandemic and was the only major economy to see growth in 2020. The view on the yuan now is on the verge of turning bearish, a fortnightly poll of 13 respondents showed.

Bets on the South Korean won, Singapore dollar and Malaysian ringgit all turned bearish for the first time since early last summer.