Dollar Posts Weekly Loss as Bearish Bets Jump

© Reuters.  © Reuters.

By Yasin Ebrahim – The dollar posted a weekly loss as data showed bearish bets on the greenback surged to a more-than-two-year high.

Speculators increased their net short dollar position in the latest week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday, the largest bearish position since April 2018.

The value of the net short dollar position rose to $ 16.83 billion in the week ended June 23, compared with a net short of $ 15.69 billion the previous week, Reuters reported.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.07% to 97.09.

Rising Covid-19 infections in the U.S. and other parts of the world did little to spark investor appetite for the safe-haven greenback, and one analyst suggests that is a sign to sell into dollar strength.

The dollar may attract safe-haven demand in the wake of renewed market uncertainty, but any rebound remains a selling opportunity, Unicredit (MI:) said.

“It is true that the dollar is once again benefiting from fears of a second wave of the Covid-19 pandemic, but so far these concerns have not been sufficient to trigger an aggressive return to the greenback,” Unicredit FX strategist Roberto Mialich said.

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