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Traders Look Beyond Euro for Next Round of Short Dollar Bets

Traders Look Beyond Euro for Next Round of Short Dollar Bets

Mint6 days ago
(Bloomberg) -- Traders are seeking alternatives to the euro when shorting the dollar as they look to capitalize on expectations for further weakness in the US currency.
Long euro positions against the greenback remain in favor due to optimism over increased defense spending in the single-currency region. Traders though are looking to bet currencies such as the Chinese yuan, Australian dollar and South Korean won will strengthen versus their US peer on expectations the Federal Reserve will resume interest-rate cuts and as American exceptionalism fades.
Dollar-yuan option trading volume on the Depository Trust & Clearing Corp. climbed to a one-month high last week with investors paying a premium to speculate on downside moves in the pair versus upside ones. Volumes in Australian dollar call options, which gain if the currency rises against the greenback, were nine times greater than puts, data from the Chicago Mercantile Exchange Group's central limit order book showed July 1.
'The most recent demand in FX options has been a play in USD/CNH lower via dollar put digitals,' as well as other downside option structures, said Mukund Daga, head of foreign-exchange options for Asia at Barclays Bank in Singapore. 'This has been on the back of the most recent truce pact' that US President Donald Trump has signed with China, he said.
A put digital option refers to a strategy that offers a fixed payout if the currency pair falls below a predetermined level when it expires.
There's also an increased interest in bullish option structures for the Korean won, Daga said.
Hedge funds are betting the won may replicate the Taiwan dollar's surge in early May, when the central bank allowed its currency to appreciate to help reach a trade deal with the US. The removal of political uncertainty in South Korea may also help support the won.
What Bloomberg Strategists Said...
'A weaker dollar and a steady, gradually appreciating yuan have underpinned KRW gains in recent weeks despite tariff risks. From a valuations lens, the won remains competitive. Its real effective exchange rate is still cheap relative to historical averages, leaving room for further appreciation without threatening export dynamics.'
— Mary Nicola, Macro Strategist, Singapore
While long euro trades are still popular, interest in the Australian dollar is growing, according to Troy Fraser, head of foreign-exchange sales for Australia and New Zealand at Citigroup Inc.. 'We have seen interest mainly from hedge fund clients to put on AUD/USD topside in the short tenors over the past few weeks,' he said.
One currency that traders appear less enthusiastic about is the yen. Appetite for long positions in the currency cooled after it tumbled versus the dollar in parts of May and June.
'USD/JPY short has certainly been a widow-maker,' said Antony Foster, head of Group-of-10 spot trading at Nomura International Plc in London. 'There are trade talks and politics involved which, once resolved, might help USD/JPY revert lower again, but whilst the risk is there, people are reluctant to really involve themselves.'
More stories like this are available on bloomberg.com
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Kuwaiti women are emerging as key innovators in the Gulf's startup landscape, empowered by policy reform, digital access, and a new culture of economic participation/Image: Instagram TL;DR: Female-led startups now form around 41 percent of the Kuwaiti ecosystem, spearheading industries such as e‑commerce, wellness, and fintech. Government initiatives under Kuwait Vision 2035 and mentorship networks like KWEEP are offering funding, training, and professional access. Success stories include brands like Boutiqaat and Lei Wa Lakom founders, women-led ventures creating both economic impact and cultural change. A Rising Force in GCC Tech Spaces Kuwait i women are becoming a formidable force in the Gulf's entrepreneurial ecosystem, emerging as key drivers of innovation and new business ventures. Across the region, women's participation in startups has been growing steadily, but Kuwait is now leading the charge with an impressive share of women-led initiatives, particularly in sectors like e-commerce, fintech, wellness, and education technology. Recent regional studies, including data from the MENA Women Business Club, suggest that nearly 41 percent of startups in Kuwait have at least one female founder, which is among the highest ratios in the Gulf Cooperation Council (GCC). This rise is fueled by a combination of progressive government policies, digital transformation, and increasing access to funding tailored for female entrepreneurs. This momentum reflects a broader societal openness in Kuwait towards female participation in business, distinguishing it from more conservative norms seen in parts of the region. Policy and Platforms Supporting Women Entrepreneurs Kuwait Vision 2035 promotes private-sector dynamism and women's leadership in the economy. Initiatives such as 'She's Next' by Visa and NBK offer grants of up to USD 50,000, training, and networks. These focus on digital readiness, leadership and security awareness, addressing key hurdles in scaling women-led startups (talent, partnerships, digital adoption). KWEEP (Kuwait Women's Economic Empowerment Platform), supported by Gulf Bank and local corporates, launched mentorship streams and leadership bootcamps to foster female workplace advancement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Klik Di Sini Undo The Kuwait Digital Startup Campus Pre‑Accelerator, backed by Boeing and the Youth Public Authority, targets nationals aged 18–35, further expanding access to entrepreneurial tools. Startup Stories Driven and Powered by Kuwaiti Women Advocate and founder of Lei Wa Lakom/Image: Instagram One of the standout examples of Kuwaiti women's entrepreneurial success is 'Boutiqaat', founded by 'Abdullah Al Essa' but driven in large part by the creative and managerial contributions of Kuwaiti women who have shaped the brand's influencer-centric model. The platform redefined the e-commerce landscape in the region by merging online retail with social media culture. Through curated selections by popular influencers, Boutiqaat offers customers a personalised shopping journey that blends beauty, fashion, and technology. This strategy not only revolutionised how products are marketed but also demonstrated the commercial power of regional social influencers, many of whom are women. Another significant initiative is 'Lei Wa Lakom', established by 'Taiba Al-Humaidhi', a trailblazing Kuwaiti entrepreneur known for her work in social impact and innovation. 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