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, according to a Reuters poll on Thursday. In its policy meeting on Wednesday, the Fed left key rates unchanged and didn’t announce the start of its asset purchase tapering, as expected, but Chair Jerome Powell said board members believed tapering could conclude in the mid of next year, paving the way for potential rate hikes. The Fed’s stance sent the dollar to its highest level in a month on Thursday, while its counterparts in Asia were broadly unchanged. Mildly bullish positions in the yuan from two weeks ago were reversed, the poll of 11 respondents showed, on concerns over the fate of embattled property developer China Evergrande—Asia’s biggest junk bond issuer and a key component of the …
Short Bets on Asian Currencies Creep up on Fed Taper Outlook: Reuters Poll
September 24, 2021
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