Dollar Bears Get New Lease of Life as Yields Hobble Currency
- Risk reversals show more weakness could be ahead for greenback
- Bloomberg dollar gauge in longest losing streak since June
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Dollar bears are making a comeback as falling Treasury yields handcuff the reserve currency. Technical indicators suggest the decline may extend.
The Bloomberg Dollar Spot Index climbed 0.1% Tuesday after falling for the previous six sessions in its longest losing streak since June. The index was pressured lower after Treasury 10-year yields dropped almost 15 basis points since the end of March. Leveraged traders have slashed bullish positions, according to the latest data from Commodity Futures Trading Commission.