Bullish bets on Asian FX rise
Growth sensitive Asian currencies are attracting interest. According to the latest Reuters Asia FX poll, long positions on the Chinese Yuan are at their highest since January 2014. Meanwhile bullish bets on the South Korean Won are at an eight year high, long positioning on the Singapore Dollar is at its highest in three years and the Taiwan Dollar hasn’t attracted this much interest in over a decade.
The story here is simple. Vaccine rollouts promise a return to “normality”, virus containment has by and large been better through Asia-Pacific, while currency inflows are picking up with improved offshore exports.
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