Traders place record bets on dollar slump

Traders have placed record option bets on a sharp decline in the U.S. dollar, driven by concerns over new trade tariffs, Bloomberg reported.

According to the agency, market participants are increasingly positioning for further weakness in the dollar. If these expectations materialise, the currency could fall to its lowest level in four years.

The dollar has ranked last among G10 currencies, signalling a reassessment of its role as a traditional safe-haven asset. Bloomberg cited concerns over the growing U.S. budget deficit, trade tensions and accelerated shifts of capital into gold and other assets as key drivers.

U.S. President Donald Trump said the dollar was “doing great” when asked by reporters about its outlook.