By Ambar Warrick
(Reuters) – Short positions on most Asian currencies were seen unwinding over the past two weeks, a Reuters poll showed on Thursday, with traders turning skeptical of the dollar’s (DXY) bull run after U.S. retail sales data came in below expectations.
Moreover, the run-up to the U.S. mid-term elections next month and related political uncertainty is also expected to weigh on the greenback, which has gained nearly 4 percent this year against a basket of currencies (DXY), thereby providing support to regional currencies.
Bearish bets on the Singapore dollar <sgd=>, Taiwan dollar <twd=tp>and the Philippine peso <php=>declined over the past two weeks, a poll of 10 respondents showed. The currencies had suffered heavy losses over the last fortnight, hurt by a confluence of factors including higher crude oil prices and brewing global trade tensions.</php=></twd=tp></sgd=>
Short positions on the Thai baht <thb=th>fell to the lowest since late May. Strong economic fundamentals have bolstered sentiment for the baht, which is the best performer amongst its peers in the year so far.</thb=th>