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UPDATE 1-Speculators cut net U.S. dollar longs to lowest since mid-June-CFTC, Reuters

Published 29/08/2015, 06:40 am
© Reuters.  UPDATE 1-Speculators cut net U.S. dollar longs to lowest since mid-June-CFTC, Reuters
AUD/USD
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(Adds table, details on euro, yen contracts)

Aug 28 (Reuters) - Speculators pared back bullish bets on the U.S. dollar in the latest week to their smallest in more than two months, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday.

The value of the dollar's net long position fell to $23.99 billion in the week ended Aug. 25, from $32.26 billion the previous week. This was the first time in four weeks that net dollar longs came in below $30 billion.

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

Concerns about global equity weakness and China's deepening slowdown convinced speculators that the Federal Reserve would delay raising interest rates. That prompted a sell-off in the dollar the last two weeks.

At the same time, investors bought back the euro and yen, as they unwound carry trades, or bets in high-yielding assets, funded in both low-interest rate currencies.

As a result, net euro short contracts dropped to 66,078 in the latest week, from 92,732 previously. This week's net euro shorts were the smallest in more than a year.

Net short yen contracts also fell to 39,059, from 90,130 the previous week. That was the lowest net shorts since mid-May.

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

YEN (Contracts of 12,500,000 yen)

Aug. 25, 2015

Prior week

week

Long

59,922

45,935 Short

98,981

136,065 Net

-39,059

-90,130 EURO (Contracts of 125,000 euros)

Aug. 25, 2015

Prior week

week

Long

87,807

68,473 Short

153,885

161,205 Net

-66,078

-92,732 POUND STERLING (Contracts of 62,500 pounds sterling)

Aug. 25, 2015

Prior week

week

Long

58,051

52,030 Short

54,752

56,001 Net

3,299

-3,971 SWISS FRANC (Contracts of 125,000 Swiss francs)

Aug. 25, 2015

Prior week

week

Long

4,889

8,183 Short

17,486

18,051 Net

-12,597

-9,868 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)

Aug. 25, 2015

Prior week

week

Long

29,555

21,407 Short

89,267

88,201 Net

-59,712

-66,794 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)

Aug. 25, 2015

Prior week

week

Long

47,275

47,544 Short

111,002

97,427 Net

-63,727

-49,883 MEXICO PESO (Contracts of 500,000 pesos)

Aug. 25, 2015

Prior week

week

Long

20,401

24,629 Short

103,454

85,056 Net

-83,053

-60,427 NEW ZEALAND DOLLAR (Contracts of 100,000 NZ dollars)

Aug. 25, 2015

Prior week

week

Long

15,388

14,012 Short

21,451

23,969 Net

-6,063

-9,957

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