Investors less bearish on Chinese yuan after Fed rate cut – Reuters poll

According to the latest Reuters poll of 15 analysts, the bearish bets on the Chinese yuan were trimmed after the US Federal Reserve’s (Fed) 50bps rate cut while the investors turned bearish on the Indonesian rupiah, in the face of lingering coronavirus concerns.

Key takeaways:

“Aided by a weakening dollar, short positions on the Chinese yuan stood at their lowest since early January 2019.

Bearish bets on the Korean won and Singapore dollar were also trimmed.

Market participants turned bearish on the Indonesian rupiah for the first time since late October as volatility surged in the local markets.

investors increased bearish positions on the Malaysian ringgit as its central bank cut rates to a 10-year low on Tuesday.

Short bets on the Thai baht also rose, after Bank of Thailand vowed to act appropriately following the Fed’s cut.

Investors reduced bullish stakes on the Philippine peso after the central bank reaffirmed its commitment to cutting interest rates further this year.”