The value of the net long dollar position was $14.24 billion in the week ended Sept. 3, compared with $12.03 billion in the previous week, data showed. Net long US dollar positions were the smallest in about 14 months in the week ended August 27.
In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the greenback posted a net long position of $13.114 in the week ended Sept. 3, compared with $10.558 billion the previous week.
The dollar as a safe haven benefited during the week by escalating trade tensions between the United States and China as both countries slapped tariffs on each other.
But tensions have eased in recent sessions as both China and the United States have scheduled upcoming trade talks, which could diminish some of the bullish positioning on the dollar, some analysts said.
For the month of August, the dollar posted gains of 0.4% against a basket of six major currencies.
The greenback was also boosted by several comments from Federal Reserve officials suggesting a reluctance to cut interest rates at next month's monetary policy meeting, said Kathy Lien, managing director of FX strategy at BK Asset Management in New York. "All of this makes us increasingly worried that the market is misjudging the degree of Fed dovishness," Lien said.