Hedge Funds Are Profit Taking After Dollar’s Decline, Says BofA

The dollar is getting some respite as hedge funds book profits on bearish bets, but the relief is likely to be fleeting, according to traders at Bank of America Corp.

The Bloomberg Dollar Spot Index gained as much as 0.6% on Wednesday after sliding the previous day to its lowest level since February 2022 — the currency’s biggest one-day drop since President Donald Trump’s April tariff announcement.

“There is definitely some head-scratching toward the speed of the move and investors are looking to book gains,” said Julian Weiss, head of Group-of-10 FX options trading at the US bank ...