Asia FX bears ease on hopes of less hawkish Fed, China reopening

Short bets on major Asian currencies were scaled back amid hopes the region's economic outlook would benefit from China easing its COVID-19 restrictions and that the Federal Reserve would temper its rate hikes, a Reuters poll showed on Thursday.

Additional findings

Bearish positions in China's Yuan and Thailand's Baht were at their lowest since April, while market participants turned marginally bullish on the Singapore Dollar, a fortnightly poll of 11 analysts showed.

A major catalyst behind the return of some optimism was the weakness in the US Dollar after recent data gave the strongest signs yet that U.S. inflation was slowing, which helped temper expectations of further outsized Fed rate hikes.

Short bets on the South Korean Won, which typically responds sharply to the greenback's moves, were also at their lowest level since July 2021.

Short positions on the Malaysian Ringgit fell to levels last seen in June, while those in Indonesia's Rupiah and the Philippine Peso were at their lowest since August.

Also read: Asian Stock Market: Indices face turbulence as market mood sours, oil bleed

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.