Asian Currency Bears Retreat As Inflation View Improves.

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Bearish bets on emerging Asian currencies eased on hopes that monetary tightening will cool red-hot inflation; with short bets on the Thai baht falling sharply after the first rate hike in the country in nearly four years.

Short positions on all emerging Asian currencies fell, with bets on China’s yuan at their lowest since late-April.

Short bets on the Philippine peso , the Singapore dollar and the Indonesian rupiah also fell to multi-month lows.

An unchanged U.S. inflation print for July, the first notable sign of relief after persistently rising prices; also helped improve the sentiment in the region. 

Short bets on the Thai baht slipped to their lowest since early June after the Bank of Thailand (BoT) raised its interest rate by 25 basis points, kick-starting its tightening cycle after lagging regional peers.

Reuters.

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