Long positions in emerging Asian currencies fell in the last two weeks with bets on the Philippine peso more than halved, a Reuters poll showed, as the outlook for Asia's export driven economies became clouded by reduced expectations for more monetary stimulus in the United States.
---- Peso long positions more than halved
Optimistic positions in the peso fell to their lowest since late June, according to the survey of 12 currency analysts, from their largest in almost two years reported in the previous poll published on August 2. Currency market players also reduced long positions in the South Korean won to their lowest in about two months, while nearly halving bullish bets on the Singapore dollar.
Bullish bets on the Chinese yuan were almost squared in the last two weeks. Sentiment on the rupiah turned bearish as the Indonesian currency came under pressure from local importers' dollar demand and weak bond markets. Investors appeared cool toward the central bank's attempt to lure fresh foreign inflows. On August 10, Bank Indonesia raised its deposit facility rate, part of a policy move aimed at stabilising the rupiah currency and improving a current account deficit that doubled in the second quarter.
Reflecting the survey result, emerging Asian currencies already came under pressure as fading hopes for more easing by the Federal Reserve supported US Treasury yields. Regional units have been supported since late July by expectations of not only the Fed's action but also the European Central Bank's measures to ease the euro zone's debt crisis.
The Reuters survey focused on what analysts believe are the current market positions in nine Asian emerging market currencies: Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and Thai baht.