Speculators boosted their net long bets on the US dollar in the latest week to the highest in nine weeks, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday.
The value of the net long dollar position was $17.80 billion in the week ended Oct. 1. The net long dollar position had stood at $17.37 billion last week. To be long a currency means traders believe it will rise in value, while being short points to a bearish bias. US dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc and Canadian and Australian dollars.
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 $17.49 billion in the week ended Oct. 1, compared with $17.37 billion the previous week.
While the dollar has been in favour for many months now thanks to its relatively high interest rate and a strong economy, the ongoing trade war with China and a scramble for funding in US money markets has added fuel to the fire in recent weeks. The dollar index, which measures the greenback against a basket of other currencies, hit a more than 2-year high earlier this week.