Short bets on Asian currencies climb on central bank divergence – Reuters poll

According to the latest Reuters poll of analysts and fund managers, an increasingly hawkish Fed has widened the disparity between several Asian central banks, leading to a rise in the bearish bets on the regional currencies.

Key findings

Short positions on the Malaysian ringgit were raised to their highest since late-August, “while the position was the largest since early December in case of the Thai baht.”

“Bearish bets were also raised on the Taiwan dollar, Indian rupee and the Philippine peso.”

“Bets on the Indonesian rupiah inched closer to a bearish territory after the country's central bank cut its 2022 economic growth outlook amid risks from inflation and geopolitical tensions.”

“Meanwhile, short positions on South Korea's won rose and long positions in the Singapore dollar were cut despite central banks in both countries recently tightening their monetary policy.”

Related reads

• USD/CNY to hit the 6.45 mark by the end of Q2 – MUFG
• BOK Chief Rhee: Economic recovery to be weaker than previously expected