Bloomberg projects dollar’s decline to accelerate amid growing risks

The dollar is set for its longest slump in three weeks. Bloomberg reports that options markets point to more losses ahead, and rising risks could trigger another plunge in the US currency as early as August.

The Bloomberg Dollar Spot Index extended its decline in early Tuesday trading, dropping by 0.4% to hit a new session low. Meanwhile, a key sentiment gauge—one-month risk reversals —shifted into negative territory for the first time in two weeks. The repricing suggests that the dollar could be headed for a renewed bearish trend, the news agency says.

Peter Kinsella of Union Bancaire Privee UBP SA does not rule out further weakness in the US currency. Among the key factors weighing on the dollar, he cites the pressure from President Donald Trump on Federal Reserve Chair Jerome Powell.

George Saravelos at Deutsche Bank AG points out that the US is absorbing most of the tariff costs, dragging the dollar lower. He notes that the currency’s recent surge mirrors last year’s pattern—a 2% rally followed by a loss of upward momentum.