Hedge Funds Smell Blood in New Zealand as Kiwi Shorts Soar
Hedge Funds Smell Blood in New Zealand as Kiwi Shorts Soar
(Bloomberg) -- Hedge funds are ramping up their short bets against the New Zealand dollar.
Net short speculative positions against the kiwi rose to their highest since November, according to the latest Commodity Futures Trading Commission data. The New Zealand dollar was August’s weakest Group-of-10 currency, down 3.5% as economic data deteriorated and trade-war tensions rattled the globe.
Heightened trade tensions between the U.S. and China have roiled global markets this year, and the Trump administration slapped the latest tariffs on roughly $110 billion of Chinese imports on Sunday. New Zealand is particularly vulnerable with China’s share of the country’s exports climbing to 26% in July from 23% a year ago.
The kiwi fell as much as 0.5% against the U.S. dollar in early trading Monday. It has weakened more than 6% against the greenback year-to-date.
--With assistance from Stephen Spratt.
To contact the reporter on this story: Cormac Mullen in Tokyo at cmullen9@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Joanna Ossinger, Tan Hwee Ann
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