Bearish bets return on Indian rupee amid hawkish Fed and virus spike – Reuters poll

Investors turned bearish on the Indian rupee as well as the Indonesian rupiah, as they trim their long positions across the Asian fx space amid the Fed’s tapering and covid variant fears, the latest Reuters poll of analysts and fund managers showed Thursday.

Key findings

“Investors reversed their positions on the rupiah and the rupee, compared with two weeks ago, as they went short on the currencies for the first time since early May.”

“Traders raised their bearish positions on both the Malaysian ringgit the Thai baht, while long bets were trimmed on the Chinese yuan, the Philippine peso and the Taiwanese dollar.”

“Bullish positions on the yuan and the Taiwanese dollar were more than halved to their lowest in over a month, after data showed subdued Chinese June factory activity, while Taiwan's export orders slowed down in May.”

• USD/INR Price Analysis: Approaches multi-month high above 74.50