Speculators boost dollar bets to highest in six months

London (Jan 27)  Speculators in the latest week increased bets on the US dollar to the highest in six months, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net long position rose to $25.89 billion in the week ended Jan. 21, from $22.66 billion the previous week. This week's long dollar position was the highest since July 23 last year.

It was the 12th straight long position for the dollar and reflects expectations the Federal Reserve will continue to pare back its asset purchases this year, though at a gradual pace.

Many in the market expect the Fed to slow its monthly bond purchases to a $65 billion pace from $75 billion at its policy meeting next week. To be long a currency is a view it will rise, while being short is a bet its value will decline.