The bearish sentiment around the Indian rupee has been the highest since late April 2020, as the second wave of coronavirus dents the economic recovery prospects, the latest Reuters poll of analysts and fund managers showed on Thursday.
Key findings
“Investors turn bullish on six out of nine Asian currencies.”
“US dollar weakness, cooling Treasury yields help Asian FX.”
“Long bets on the yuan stood at their highest in nearly two months, as China’s economic recovery quickened sharply in the first quarter to record growth of 18.3% from last year’s coronavirus slump, led by exports.”
“Bullish positions on the Singapore and Taiwanese dollars were at their highest since early and late February, respectively, as exports data painted pictures of strong growth.”
“Long positions on the Philippine peso were at a more than two-month high, as data showed the country’s trade deficit shrank in February while remittances, an important source of dollars to the country, grew after months of declines.”
“Bearish bets on India’s rupee climbed to their highest since last April, as a virus surge halted what was recently seen as a promising growth story in the region.”
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India: Covid surge to likely delay RBI policy normalization, dent growth – HSBC
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