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Currency speculators pared bets against the US dollar in the latest week, according to Commodity Futures Trading Commission data released on Friday. The value of the dollar's net short position fell to $17.99 billion in the week ended October 13, from a $20.2 billion net short the prior week.
The decline in the net short dollar position was driven mainly by speculators' increased bets against sterling and a substantial reduction in long euro, yen and Canadian dollar bets. The net short position on sterling hit a record high at 65,346 contracts from 62,106 the previous week. The aggregate US dollar position, meanwhile, is derived from the net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars.

Copyright Reuters, 2009

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