Currencies
Dollar Drop Seen to Be Brief Amid Tariff Worries, US Economic Strength
- Bloomberg gauge of greenback falls after six-day advance
- Tuesday’s decline follows previous day’s pause on US tariffs
A measure of dollar sentiment in the options market remains near the most bullish toward the dollar in about seven months.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Traders are wagering that Tuesday’s slump in the dollar will likely prove short-lived, given the backdrop of relative US economic strength and the risks that a trade war could drive investors into havens.
The Bloomberg Dollar Spot Index fell as much as 0.7% on the day, snapping six straight sessions of gains. The gauge is pulling back from the highest level since 2022, which was reached in Asian trading at the start of the week as speculators braced for US tariffs that were scheduled to take effect Tuesday.