Speculators cut short dollar bets to lowest since July

By Kate Duguid

NEW YORK, Oct 30 (Reuters) - Speculators reduced their net short dollar positions in the latest week to the lowest since late July, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The value of the net short dollar position fell to $25.93 billion in the week ended Oct. 27, compared with a net short of $27.05 billion the previous week. U.S. net shorts hit a more than nine-year high of $33.68 billion in late August.

U.S. dollar positioning was derived from contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, and Swiss franc, as well as the Canadian and Australian dollars.

In a broader measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real, and Russian ruble, the U.S. dollar posted a short position of $26.46 billion, down from net shorts of $27.32 billion the week before.

The speculative community has been short the dollar since mid-March.

In the week through Oct. 27, the dollar index rose modestly, having benefited from safe-haven buying on reports of rising COVID-19 infections globally and on market jitters ahead of the Nov. 3 U.S. presidential election.

Since Tuesday the index has risen 0.91% as concerns about rising infections and the election have intensified. France and Germany joined Italy and Spain this week in imposing strict lockdowns similar to those implemented this spring. U.S. coronavirus cases hit a record high on Thursday. (Reporting by Kate Duguid; Editing by Leslie Adler and Sonya Hepinstall)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.