UPDATE 1-Bets against US dollar at highest since Aug 2011-CFTC

by on September 28, 2012 8:21 pm BST

Fri Sep 28, 2012 4:21pm EDT

NEW YORK, Sept 28 (Reuters) - Currency speculators boosted bets against the
U.S. dollar in the latest week to the highest 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 rose to $17.96 billion in the
week ended Sept. 25 from a net short of $10.05 billion the previous week. That
was the largest negative dollar bet since early August last year and was the
third straight weekly net short position for the greenback.
    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.
    Investors have dumped the greenback as the Federal Reserve vowed to embark
on another round stimulus for the slumping U.S. economy. That entailed flooding
the financial system with dollars and depressing the currency's value.
    The dollar index has fallen 1.6 percent so far this month, a period
in which the European Central Bank also announced a bond-buying plan to lower
borrowing costs for troubled euro zone nations such as Spain and Italy.
    That has helped improve sentiment on the euro, which so far in
September has advanced 2.2 percent.
    As a result, net euro short positions continued to contract to 50,238
contracts this week from 73,482 the previous week. That's a far cry from record
euro shorts of more than 170,000 contracts in January this year.
    The CFTC report also showed increased risk appetite as net longs in the
Australian and Canadian dollars, as well as sterling expanded.
     JAPAN YEN (Contracts of 12,500,000 yen) -3,392,306,209.02
             9/25/12 week         9/18/12 week
   Long          47,318               41,500
   Short         26,207               26,024
   Net           21,111               15,476
      EURO (Contracts of 125,000 euros) 8,099,621,550.00
             9/25/12 week         9/18/12 week
   Long          53,345               48,817
   Short        103,583              122,299
   Net          -50,238              -73,482
    POUND STERLING (Contracts of 62,500 pounds sterling) -2,745,246,762.50
             9/25/12 week         9/18/12 week
   Long          60,809               52,597
   Short         33,672               38,185
   Net           27,137               14,412
    SWISS FRANC (Contracts of 125,000 Swiss francs) 120,559,052.60
             9/25/12 week         9/18/12 week
   Long          13,567               13,626
   Short         14,471               18,153
   Net             -904               -4,527
    CANADA DOLLAR (Contracts of 100,000 Canadian dollars) -10,745,206,038.35
             9/25/12 week         9/18/12 week
   Long         123,643              126,688
   Short         18,297               14,807
   Net          105,346              111,881
    AUSTRALIA DOLLAR (Contracts of 100,000 Aussie dollars) -9,301,013,700.00
             9/25/12 week         9/18/12 week
   Long         119,144              117,009
   Short         29,582               47,763
   Net           89,562               69,246
    MEXICO PESO (Contracts of 500,000 pesos) -5,493,136,301.77
             9/25/12 week         9/18/12 week
   Long         147,245              140,375
   Short          5,989               22,228
   Net          141,256              118,147
  NEW ZEALAND DOLLAR (Contracts of 100,000 NZ dollars) -1,638,727,200.00
             9/25/12 week         9/18/12 week
   Long          23,389               20,402
   Short          3,424                3,797
   Net           19,965               16,605