Sentiment turns bearish on rupee: Reuters poll

SINGAPORE Thu Jan 30, 2014 2:22pm IST

An employee counts rupee currency notes at a cash counter inside a bank in Kolkata June 18, 2012. REUTERS/Rupak De Chowdhuri

An employee counts rupee currency notes at a cash counter inside a bank in Kolkata June 18, 2012.

Credit: Reuters/Rupak De Chowdhuri

Related Topics

SINGAPORE (Reuters) - Long positions in the Chinese yuan hit their lowest level in more than four months with sentiment more bearish on most emerging Asian currencies, a Reuters poll showed on Thursday, as investors avoided risky assets.

The yuan's bullish bets fell to their lowest since mid-September, the survey of 12 participants including analysts and traders showed.

The yuan, or renminbi, hit its weakest level of the year earlier on Thursday amid softening demand ahead of the Lunar New Year holidays.

Sentiment on the rupee turned bearish with the currency seeing the first short positions in more than two months.

On Monday, the rupee fell to its lowest since mid-November due to the emerging market rout, although it recovered some losses after the central bank's unexpected rate hike the day after.

Short positions in the Taiwan dollar hit the largest level since mid-April as traders said the island's foreign exchange authority had been spotted intervening to prevent the currency from outpacing the South Korean won.

Sentiment on the won has turned almost neutral.

The Thai baht's short positions rose slightly as the government pushed ahead with a general election on Sunday despite warnings it could end in violence.

Emerging Asian currencies were set to see monthly losses as the U.S. Federal Reserve reduced its monthly bond-buying programme by another $10 billion and on a slowing Chinese economy.

Investors stayed wary of a further sell-off in assets in other emerging markets such as Latin America.

Reflecting such worries, short positions in the Singapore dollar fell as the currency was seen to be relatively safer within Asia due to the city-state's triple-A credit ratings.

The Reuters survey is focused on what analysts believe are the current market positions in nine Asian emerging market currencies: Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, rupee, Philippine peso, Malaysian ringgit and the Thai baht.

The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3.

A score of plus 3 indicates the market is significantly long U.S. dollars. The figures included positions held through non-deliverable forwards (NDFs).

(Additional reporting by Sumanta Dey in BANGALORE; Editing by Jacqueline Wong)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Market at Record

Market at Record

Sensex, Nifty hit record highs; reforms outpace hawkish Fed.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Samsung Results

Samsung Results

Smartphone woes drag Samsung Elec Q3 profit to more than 3-year low.  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage