Dollar Traders Are Paying a Record to Bet on Deeper Selloff

WATCH: Dominic Bunning, head of G-10 FX strategy at Nomura, discusses the US dollar. Source: Bloomberg

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By Vassilis Karamanis

January 27, 2026 at 9:10 AM UTC

Updated on

January 27, 2026 at 10:54 AM UTC

Dollar traders are paying the most on record to bet on a deeper selloff in the greenback as a volatile US political landscape triggers a rush into bearish hedges.

The premium for short-dated options that profit from a weaker US currency has widened to the highest level since Bloomberg began compiling the data in 2011. The bearish sentiment isn’t confined to the front-end — investors are the most pessimistic on the dollar’s long-term outlook since at least May 2025.