for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

POLL-Biden win boosts Asia FX sentiment; bullish bets on rupiah at over 6-year high

    * Bullish bets raised on most trade-linked Asian currencies
    * Long bets on S. Korean won raised for third consecutive
poll
    * Bets on Indonesian rupiah turn bullish for first time
since Sept

    By Shriya Ramakrishnan
    Nov 12 (Reuters) - Investors took long positions in all
Asian currencies for the first time since early September, a
Reuters poll showed, as they bet a Joe Biden presidency in the
United States would foster more stable trade and foreign
policies towards the region and Beijing. 
    With U.S.-China relations at their worst in decades over
disputes ranging from technology and trade to Hong Kong and the
coronavirus, a Biden administration is expected to take a more
measured and multilateral approach, which could clear the way
for a recovery in Asia's virus-hit economies.
    "Biden's presidency may bring a fresh chapter to U.S.
foreign policy ... The tariff-led trade negotiations and
retaliation may be replaced by a more diplomatic and strategic
approach to deal with U.S. trade deficits," Margaret Yang, a
strategist at DailyFX, wrote in a note earlier this week. 
    Bets in favour of the South Korean won outpaced
those in its peers and stood at their highest since early July,
2014, while bullish positions in the Chinese yuan and
Singapore dollar strengthened, the fortnightly poll of 16
respondents showed. 
    The won is now among Asia's top performing currencies this
year, benefiting from recent data pointing to stronger exports.
    
    
    Sentiment towards the Indonesian rupiah reversed,
with positions now turning bullish after more than two months. 
    Concerns over central bank independence had pressured the
rupiah earlier this year, but the currency has rebounded sharply
 since the U.S. election as a drop in U.S. bond yields led
investors to push funds into Indonesia's high-yielding debt
market. 
    Bets on the Thai baht turned firmly bullish,
climbing to their highest level since late January.
    The currency hit a 10-month peak on Wednesday, driven by
capital inflows as promising developments over a COVID-19
vaccine boosted prospects for the economy and its key tourism
sector. 
    While market participants still held long positions in the
Indian rupee, sentiment towards the currency remained
the weakest in the region despite massive dollar inflows into
the country's equities.
    Government sources last week confirmed the Reserve Bank of
India (RBI) would continue to buy U.S. dollars to prevent rupee
appreciation and that authorities were keen to keep the rupee
competitive to help provide an export boost.
    "We expect the central bank's intervention could continue
and reserves would increase at a steady pace ... Strong inflows
via FII or FDI are likely to keep the rupee stronger and at the
same time the RBI will be on guard to curb any major
appreciation," said Gaurang Somaiya, forex analyst at Motilal
Oswal Financial Services. 

    The Asian currency positioning poll is focused on what
analysts and fund managers believe are the current market
positions in nine Asian emerging market currencies: the Chinese
yuan, South Korean won, Singapore dollar, Indonesian rupiah,
Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit
and the Thai baht.
    The poll uses estimates of net long or short positions on a
scale of minus 3 to plus 3. A score of plus 3 indicates the
market is significantly long on the U.S. dollar.
    The figures include positions held through non-deliverable
forwards (NDFs).
    The survey findings are provided below (positions
in U.S. dollar versus each currency):       
     
 DD/MM  CNY    KRW    SGD    IDR    TWD    INR    MYR    PHP    THB
 12/11  -1.28  -1.52  -0.99  -1.01  -1.08  -0.26  -0.44  -0.67  -0.80
 29/10  -0.86  -1.14  -0.49  0.09   -1.23  -0.07  -0.03  -0.09  -0.02
 15/10  -1.07  -0.94  -0.72  0.35   -1.12  -0.44  -0.33  -0.15  0.10
 01/10  -0.47  -0.53  -0.25  0.61   -0.68  -0.31  -0.31  -0.68  0.38
 17/09  -1.25  -0.60  -0.61  0.39   -0.51  -0.54  -0.89  -1.07  -0.17
 03/09  -1.41  -0.71  -0.99  -0.19  -0.40  -0.91  -0.96  -1.34  -0.15
 20/08  -1.02  -0.71  -0.69  0.43   -0.31  -0.35  -0.62  -1.12  -0.21
 06/08  -0.81  -0.44  -0.57  0.45   -0.54  -0.31  -0.29  -0.76  -0.2
 23/07  -0.8   -0.19  -0.09  0.61   -0.34  -0.38  -0.22  -0.61  0.24
 09/07  -0.37  -0.06  0.13   0.26   -0.22  -0.33  -0.07  -0.48  -0.09
 
      

    
 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Rashmi Aich)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up