LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » World News

Asia FX sentiment sours as hawkish Fed signals support dollar: Reuters poll

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Thu, Oct 05, 2017
02:07 pm
Reuters
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

Sentiment towards most emerging Asian currencies soured in the last two weeks as the U.S. dollar rallied on growing expectations that the Federal Reserve will hike interest rates later this year, a Reuters poll showed.

Investors were estimated to have reduced long positions on the Chinese yuan, the Indonesian rupiah, the Malaysian ringgit and the Thai baht, according to a poll of 12 analysts, traders and fund managers.

Last week, Fed Chair Janet Yellen said the central bank needs to continue gradual rate hikes despite broad uncertainty about the path of inflation.

Additionally, the Philadelphia Federal Reserve Bank President Patrick Harker said he still has "penciled in" an interest rate hike in December, and three more rate hikes next year.

Mostly upbeat U.S. economic data and proposed tax reforms have added to the dollar`s buoyancy. The greenback posted its best weekly rise of 2017 last week.

For Asian currencies, bullish bets on the yuan fell to the lowest since April, weighed down by a series of weaker central bank fixings.

Traders believe Beijing has allowed the currency to soften in recent weeks amid worries that its recent sharp rise was starting to hurt China`s export competitivness. Recent gains in the dollar have also added pressure.

The sharp reversal has shaved the yuan`s year-to-date gains against the greenback to around 4 percent, from 7.5 percent in early September, though most market watchers do not expect the central bank will allow it to weaken much further.

Meanwhile, bullishness on the rupiah has largely evaporated after unexpected back-to-back interest rate cuts by the central bank in August and September. Policymakers are struggling to boost the economic growth rate, which stalled at around 5 percent.

Long positions on the baht fell to their lowest since March.

The poll also showed market participants turned bearish on the Indian rupee for the first time in nearly nine months after economic growth unexpectedly cooled to its slowest pace in three years.

The Reserve Bank of India acknowledged the weaker outlook on Wednesday, cutting its end-March projection for gross value added - the indicator of economic growth it prefers - to 6.7 percent from its previous forecast of 7.3 percent.

In other currencies, investors increased short positions on the Korean won to their highest since January with continuing geopolitical tensions on the Korean Peninsula dampening risk appetite among investors in the region.

Last week, the won depreciated to its weakest level since July as North Korea`s leader Kim Jong Un and U.S. President Donald Trump continued to exchange war-like threats and insults over the North`s missile development programme.

South Korea believes the North could make further provocations in coming weeks.

The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht.

The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long U.S. dollars.

The figures include positions held through non-deliverable forwards (NDFs).

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

Big BSNL prepaid plans offer on Republic Day 2021; just check out the benefits

Yes Bank Share price: Investec reduces book value per share by 3%, target price to Rs19 (from Rs 20)

Stock Market Holidays 2021 India: Trading to remain suspended on Sensex, Nifty, others Tomorrow for Republic Day 2021

Gold gains on lower yields, U.S. stimulus hopes

Republic day 2021: For this boy, it is his 35th National Award in a row

FAU-G Game Launch date: Good news! Release tomorrow, beats PUBG Mobile India

Republic Day 2021: LIVE! Tricolour unfurled at Rajpath in presence of President Ram Nath Kovind, Prime Minister Narendra Modi

People flock to UP village to see freak goat kid

Crackdown on income tax evaders! Critical notification by CBDT on evasion, Benami Property, Black Money - PAN, Aadhaar not needed, just do this online now

FAUG, PUBG Mobile India top rival, all set for launch today| Big record! How to download, APK file, pre-registration and more

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved