Asian FX bears climb multi-year highs, short bets on Thai baht rise most – Reuters poll
14.07.2022, 06:04

Asian FX bears climb multi-year highs, short bets on Thai baht rise most – Reuters poll

Bearish bets on nearly all Asian currencies firmed to new multi-year highs, as fears of an impending recession from rapidly rising interest rates to rein in sky-high inflation dampened sentiment, a Reuters poll showed on Thursday.

Key findings

Short positions on the Thai baht, the Philippine peso and the Singapore dollar were at their highest since 2018, when data was first available, according to a fortnightly poll of 13 respondents.

Analysts on average have not held net long positions on any Asian currency since late April.

Bearish bets on the baht firmed the most, with a worsening COVID-19 situation in China, which pursues a 'zero-COVID' strategy, stoking fears of a delay in return of Chinese tourists to Thailand.

Pessimism levels on the Chinese yuan, seen as a safer bet among Asia currencies, remained largely unchanged.

The Philippine peso was the most shorted Asian currency after it hit a 17-year low earlier this week, as investors feared the Bangko Sentral ng Pilipinas' (BSP) rate hikes would still leave it behind the curve in fighting inflation.

India, like many other economies, is battling soaring inflation in spite of policy tightening and wheat export curbs.

Also read: Asian Stock Market: Trades mixed amid China tech gains, recession risk

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