Bearish bets raised on Indian rupee amid USD strength and virus woes – Reuters poll

Investors turned slightly bullish on the Indian rupee among other Asian currencies, as the US dollar declined amid fading Fed’s tapering expectations, the latest Reuters poll of analysts and fund managers showed Thursday.

Key findings

“Investors unwound their bearish bets on the Indian rupee to be slightly bullish for the first time since mid-June, with the currency appreciating 0.2% in August after vaccination programs were ramped up and the central bank continued its monetary policy support.”

“Short bets were largely trimmed on the Malaysian ringgit, the Philippine peso, and the Thai baht.”

“Bearish bets on the Malaysian ringgit were at their lowest since mid-July, as the currency appreciated over 1% in the past two weeks.”

“Short bets on the baht were at their lowest since July.”

“Investors slightly raised their short bets on the Chinese yuan in the last two weeks as the latest virus outbreak continues to pressure economic activity.”

“South Korean won’s bearish bets ticked higher as the currency hit its lowest since September 2020 earlier this month, pressured by offloading of stocks by foreign investors and surging cases.”

Read: USD/INR Price News: Indian rupee bounces from a multi-support level near 74.10