Investor sentiment toward Asian currencies shifted sharply in the latest Reuters fortnightly positioning poll, with bullish bets on the Malaysian ringgit climbing to their strongest level in nearly 16 years and bearish positions on the Philippine peso falling to their lowest point in two years, Reuters reported on Thursday.
Long positions on the Malaysian ringgit, which has risen about 3 percent over the past month and roughly 12 percent in 2025, reached levels not seen since April 2010 as traders bet on solid growth prospects, steady fiscal settings and stronger foreign inflows into Malaysian assets. The rally in the ringgit has made it one of the region’s top performers, underscoring renewed confidence in Malaysia’s economic outlook even as currency markets factor in global interest rate expectations.
The Philippine peso has also strengthened recently, with the local unit climbing to around 57.85 versus the U.S. dollar, its strongest level this year, investors said. As a result, short positions on the peso – bets that it will fall – eased to their lowest since January 2024, supported by well‑contained inflation and strong demand for local government bonds. However, some analysts cautioned that the Philippine central bank’s recent decision to cut its policy rate could narrow interest rate differentials with the United States, potentially exposing the peso to external shocks.
The broader survey also showed steady bullish sentiment toward the Chinese yuan, continued interest in the Thai baht and modest gains for the Singapore dollar, as traders reassessed regional growth prospects and capital flows across Asian emerging markets.
Leave a comment