Investors cut their long positions on the South Korean won by about two-thirds and reduced bets on other Asian currencies on growing worries about the European debt crisis and US slowdown, a Reuters poll showed on Friday.
But investors also raised their bets on China's yuan and the Singapore dollar, a sign of the their growing confidence in these currencies.
High-flying emerging Asian currencies have retreated in recent weeks as investors reduced exposure to risky assets on surging financial market volatility.
In the poll, investors turned the most bearish on the Indian rupee since March 2009. With the global market panic pushing down emerging Asian units, many analysts expect regional policymakers to ease their fight against inflation.
The poll asked 10 currency strategists to estimate how the market was positioned in eight Asian currencies against the dollar. The survey measures estimates of the net long or short position in a currency on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long on dollars.
The figures include positions held through non-deliverable forwards (NDFs).