Survey: Korean won short positions decrease due to chip optimism; Thai baht and New Taiwan dollar short positions rise

Jinse Finance reported that on July 23, a Reuters survey showed that as South Korea seeks to expand its foreign exchange market, demonstrates strong trade performance, and investor sentiment towards the Korean won improves, investors have significantly reduced their bearish bets on the won. Results from a two-week survey of 10 respondents indicated that short positions on the Korean won fell to their lowest level in five months, while bearish bets on the Thai baht and the New Taiwan dollar rose to their highest in several months. Multiple factors have strengthened market participants’ confidence in the won: the introduction of 24-hour onshore USD/KRW spot trading, robust AI chip exports bolstering economic recovery, and a tighter monetary policy. “As South Korean authorities open up the foreign exchange market, confidence in the won grows. South Korea’s strong trade performance could also drive capital inflows,” said Jeff Ng, Head of Asia Macro Strategy at Sumitomo Mitsui Banking Corporation.