Sterling net shorts double - biggest rise in 5 years

New York

SPECULATORS ramped up their bets against sterling in the latest week by the most in nearly five years, as hedge funds and other asset managers struck a decidedly defensive stance in the British currency two weeks ahead of a crucial referendum over whether the country should remain in the European Union.

Sterling net short positions more than doubled to 66,299 contracts, valued at nearly US$6 billion, in the week ended June 7 from 32,851 the previous week, according to data from the Commodity Futures Trading Commission released on Friday. It was the largest net short position in sterling in three years, and the weekly increase was the largest since September 2011.