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

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

The value of the dollar's net short position fell to $16.31billion in the week ended Oct. 2 from a net short of $17.96billion the previous week, which was its largest negative dollarbet 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. dollarposition is derived from net positions of International MonetaryMarket speculators in the yen, euro, sterling, Swiss franc,Canadian and Australian dollars.

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

The dollar, meanwhile, have been weighed by the FederalReserve's unveiling of another round of bond buying, calledquantitative easing. The bond buying is tantamount to printingmoney and therefore dilutes the value of the dollar.

(Reporting By Julie Haviv; Editing by Diane Craft)


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 weekLong 52,696 47,318Short 23,361 26,207Net 29,335 21,111

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

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

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

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

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

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

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

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

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

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

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

10/02/12 week 9/25/12 weekLong 137,986 147,245Short 2,121 5,989Net 135,865 141,256NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) -1,768,850,130.0010/02/12 week 9/25/12 weekLong 25,298 23,389Short 3,917 3,424Net 21,381 19,965))