Specs boost US dollar bets to highest in 6 months-CFTC, Reuters

NEW YORK Fri Jan 24, 2014 4:50pm EST

NEW YORK Jan 24 (Reuters) - Speculators in the latest week increased bets on the U.S. dollar to the highest in six months, according to data from the Commodity Futures Trading Commission released on Friday.

The value of the dollar's net long position rose to $25.89 billion in the week ended Jan. 21, from $22.66 billion the previous week. This week's long dollar position was the highest since July 23 last year.

It was the 12th straight long position for the dollar and reflects expectations the Federal Reserve will continue to pare back its asset purchases this year, though at a gradual pace.

Many in the market expect the Fed to slow its monthly bond purchases to a $65 billion pace from $75 billion at its policy meeting next week.

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

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, Canadian and Australian dollars.

JAPANESE YEN (Contracts of 12,500,000 yen) 14,163,387,715.93

1/21/14 week 1/14/14 week 1

Net Short -114,961 -118,066 EURO (Contracts of 125,000 euros) -1,580,950,425.00

1/21/14 week 1/14/14 week

Net Short -3,772 9,246 POUND STERLING (Contracts of 62,500 pounds sterling) -1,146,550,500.00

1/21/14 week 1/14/14 week

Net Long 8,720 11,160 SWISS FRANC (Contracts of 125,000 Swiss francs) 407,385,859.93

1/21/14 week 1/14/14 week

Net Short -1,921 -2,941 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) 6,154,724,913.18

1/21/14 week 1/14/14 week

Net Short -70,327 -67,345 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) 4,661,244,080.00

1/21/14 week 1/14/14 week

Net Short -64,654 -51,988