Reuters' latest poll show that long positions in CNY were cut for the first time since December
Asia FX has been enjoying a good ride against the greenback for most of 2017 and the start of 2018. This has even prompted verbal interventions by central banks in Korea and Thailand as of late.
But Reuters' latest poll shows that investors are actually starting to take some bets off the bullishness in Asian currencies. Long positions in the Chinese yuan were cut for the first time since December last year, while long bets on the Malaysian ringgit has also fallen to the lowest since November last year.
The respondents said the recent shift in positions were mainly due to the rise in US Treasury yields.
US 10-year yields hit a high of 2.88% recently, and is trading today at 2.83% - and if the uptrend continues for yields, may spark further exodus of funds away from emerging Asia to the US. It's something that was already talked about last year, and we're starting to see things picking up now.
Asian currencies aren't having a good day against the dollar today as well, a follow-through from the dollar's strong performance yesterday:
