Bearish bets re-emerge on Indian rupee amid USD strength, hawkish Fed – Reuters poll

Bearish traders regain control on the Asia fx space, with the Fed’s hawkish expectations, higher inflation and energy prices backing the US dollar strength, the latest Reuters poll of analysts and fund managers showed Thursday.

Key findings

“Crude prices testing $80 per barrel prompted investors to turn bearish on the rupee for the first time since mid-August.”

“Long positions on the Singapore dollar, Taiwan’s dollar and the Indian rupee were reversed, while bearish views on the South Korean won hit a two-year peak.”

“The Indonesian rupiah was the only currency with a bullish trend, although long bets were almost halved.”

“Bets on the yuan barely changed as the currency remained resilient despite a debt crisis at property giant China Evergrande.”

“Investors preferred the rupiah more among Asian currencies as higher commodity prices.”

Read: USD/INR Price News: Indian rupee eyes 75.00 amid a potential rising channel breakout