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Speculators pare bets against U.S. dollar in latest week

Friday, 5 Oct 2012 | 4:01 PM ET

NEW YORK, Oct 5 (Reuters) - Currency speculators pared bets against the U.S. dollar in the latest week, retreating from its highest level in more than a year, according to data from the Commodity Futures Trading Commission released on Friday.

The value of the dollar's net short position fell to $16.31 billion in the week ended Oct. 2 from a net short of $17.96 billion the previous week, which was its largest negative dollar bet since early August last year.

To be short a currency is to bet it will decline in value, while being long is a view its value will rise.

The Reuters calculation for the aggregate U.S. dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, sterling, Swiss franc, Canadian and Australian dollars.

The euro has been buoyed by the European Central Bank's bond-buying plan to lower borrowing costs for troubled euro zone nations such as Spain and Italy.

The dollar, meanwhile, have been weighed by the Federal Reserve's unveiling of another round of bond buying, called quantitative easing. The bond buying is tantamount to printing money and therefore dilutes the value of the dollar.

(Reporting By Julie Haviv; Editing by Diane Craft)

((Julie.Haviv@thomsonreuters.com)(+1-646-223-6153)(Reuters

Messaging: julie.haviv.reuters.com@reuters.net))

((JAPANESE YEN (Contracts of 12,500,000 yen) -4,692,699,001.79

10/02/12 week 9/25/12 week Long 52,696 47,318 Short 23,361 26,207 Net 29,335 21,111

EURO (Contracts of 125,000 euros) 8,116,540,875.00

10/02/12 week 9/25/12 week Long 48,335 53,345 Short 98,600 103,583 Net -50,265 -50,238

POUND STERLING (Contracts of 62,500 pounds sterling) -3,034,227,550.00

10/02/12 week 9/25/12 week Long 64,726 60,809 Short 34,632 33,672 Net 30,094 27,137

SWISS FRANC (Contracts of 125,000 Swiss francs) 131,382,183.29

10/02/12 week 9/25/12 week Long 12,641 13,567 Short 13,625 14,471 Net -984 -904

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) -10,284,204,106.53

10/02/12 week 9/25/12 week Long 112,706 123,643 Short 11,530 18,297 Net 101,176 105,346

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) -6,543,218,950.00

10/02/12 week 9/25/12 week Long 98,600 119,144 Short 34,857 29,582 Net 63,743 89,562

MEXICAN PESO (Contracts of 500,000 pesos) -5,284,971,876.24

10/02/12 week 9/25/12 week Long 137,986 147,245 Short 2,121 5,989 Net 135,865 141,256 NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) -1,768,850,130.00 10/02/12 week 9/25/12 week Long 25,298 23,389 Short 3,917 3,424 Net 21,381 19,965))

Keywords: MARKETS FOREX/IMM