Currency speculators increased their bets against the US dollar in the latest week to their highest in more than a year, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net short position rose to $10.05 billion in the week ended September 18, from $6.18 billion the previous week. That was the largest since August 30 and the second straight weekly net short US dollar position.
To be short a currency is to bet it will decline in value, while being long is a view its value will rise. The Reuters calculation for the aggregate US dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars.
Investors have sold US dollars in the wake of the Federal Reserve's commitment to inject further stimulus to a sluggish US economy. The dollar index has fallen 2.3 percent so far this month extending its August losses. Meanwhile, net euro shorts continue to dwindle to 73,482 contracts this week, as investors were encouraged by European Central Bank action to lower borrowing costs in Spain and Italy through bond purchases. The euro so far has gained 3.2 percent this month.
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