Investors Cut Bearish Bets on Most Emerging Asian Currencies

Forex News

Central banks across the globe adopted tightening postures, with the US Federal Reserve keeping its interest rates unchanged last week but likely to remain on track to increase borrowing costs in September.

According to the latest polls, investors trimmed bearish bets on most emerging Asian currencies over the last two weeks, as renewed trade war concerns were cushioned by regional central bank efforts to shore up their currencies. 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.

Bearish bets on the Indonesian rupiah were at their lowest since May 31. The rupee remains the worst performing currency in the region, having weakened nearly 7% so far this year. Investors cut bearish bets on the Indian rupee to the lowest in over three months.

A separate poll found that China's yuan will regain some of its recent sharp losses against the dollar and appreciate over the next year, but only if trade tensions between the Washington and Beijing subside.