Asian FX bulls return as dollar slips; short bets on Indian rupee spike
Investors turned bullish on most Asian currencies, a Reuters poll found, as easing bets of a sooner-than-expected hike in U.S. interest rates drove down U.S. Treasury yields and curbed the dollar’s interest rate advantage.
Sentiment towards currencies of export-focused nations with lower COVID-19 cases improved the most, the fortnightly poll of 13 respondents found. Bearish views on the Indian rupee, however, rose sharply as COVID-19 cases surged in the country.
The spike in U.S. Treasury yields last month has reversed course, as worries over a potential acceleration in inflation faded, while the U.S. Federal Reserve also made it clear that it would not hike interest rates anytime soon.