Reuters Poll: Short bets on Asian currencies creep up on Fed taper outlook

“Bearish bets on most Asian currencies rose marginally in the run-up to a U.S. Federal Reserve meeting where it hinted at possible rate hikes next year, while bullish bets on the yuan reversed,” per the latest Reuters poll published late Thursday.

The poll of 11 respondents also showed, “Mildly bullish positions in the yuan from two weeks ago were reversed on concerns over the fate of embattled property developer China Evergrande – Asia’s biggest junk bond issuer and a key component of the Chinese economy.”

“Losses in the yuan, however, were capped after the heavily indebted property giant said it would make a bond coupon payment on Thursday, easing some fears of a possible default,” added Reuters.

Additional findings from the survey mentioned that short bets on the South Korean won climbed to their highest level since March last year, while bear positions rose significantly in the Thai baht and the Philippine peso. 

Read: US 10-year Treasury yields poke 11-week top after the biggest jump since February

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