Investors slashed bets on the Singapore dollar by more than 80 percent while cutting positions in most emerging Asian currencies during the last two weeks, a Reuters poll indicated on Thursday. Investors more than halved bets on the Indian rupee, the Taiwan dollar, the Malaysian ringgit, the Philippine peso and the Indonesian rupiah, according to the survey of 11 currency analysts, conducted on Wednesday and Thursday.
They also reduced positions in the South Korean won to almost a half. In the previous poll, published on February 2, investors were more bullish on emerging Asian currencies, adding bets on the rupee and the won to their largest in more than 15 months. But the new poll showed that currency players reduced positions in the regional units as they were seen excessively bought and concerns over the euro zone's debt crisis grew again.
Several EU sources said on Wednesday the euro zone is examining ways of holding back parts or even all of the bailout fund programme until after elections expected in Greece in April while still ensuring it avoids a disorderly default. Investors have doubts over implementation of unpopular Greek austerity measures, given intense public resistance.
The Reuters survey focused on what analysts believe are the current market positions in nine Asian emerging market currencies: Chinese yuan, won, Singapore dollar, rupiah, Taiwan dollar, rupee, Philippine peso, ringgit and Thai baht. The poll started covering the baht from Thursday. 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 on dollars. The figures included positions held through non-deliverable forwards (NDFs).
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