NEW YORK Feb 15 Currency speculators reduced
their bets against the U.S. dollar in the latest week and built
up the largest short sterling position since last June,
according to data from the Commodity Futures Trading Commission
released on Friday.
The value of the dollar's net short position fell to $3.02
billion in the week ended Feb. 12, from $9.15 billion the
Much of the dollar's gain came at the expense of the British
pound sterling. Short contracts on the UK currency swelled to
16,776, the most since mid-June 2012.
The Bank of England said last week it wold reinvest its
government bond holdings as they mature next month and promised
to provide more stimulus if needed to boost economic recovery.
To be short a currency is to bet it will decline in value,
while being long is a view its value will rise.
Speculators cut bets against the Japanese yen but remained
short to the tune of 61,306 contracts. Plans for aggressive
monetary easing in Japan have sent the yen down sharply against
the dollar and euro in recent weeks and caused consternation
among some countries who feel Tokyo is deliberately weakening
its currency to get a trade advantage.
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.