Currency speculators increased their 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 rose to $6.49 billion in the week ended December 24, from a net short position of $6.39 billion the previous week.
Speculators sharply reduced bets against the euro in the latest week to 2,549 contracts from 9,736 contracts. Sentiment on the euro has improved, driving it to a 8-1/2-month high on December 19, as worries about the euro zone debt crisis eased. The other major change in positioning was in the Swiss franc, with speculators more than doubling bets in favour of the currency. Long bets rose to 11,435 contracts in the latest week, the highest since August, 2011. Bets on further losses in the Japanese yen fell for a second straight week after hitting more than five-year peaks earlier this month.
The yen has weakened sharply and hit a more than two-year low against the dollar on Friday on expectations Japan's new government will push for aggressive monetary easing. 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.
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