Speculative investors increased bullish positioning on the US dollar to its highest level since early 2025, as geopolitical tensions in the Middle East reinforced demand for the currency’s traditional safe-haven status, according to a report by Bloomberg.
The report cites data from the Commodity Futures Trading Commission as showing that hedge funds, asset managers and other speculators held approximately $27.8bn in net long dollar positions as of 9 June – the strongest bullish stance in more than a year.
The data indicates a sustained build-up in confidence in the US currency, which strengthened since the outbreak of conflict in the Middle East. A Bloomberg dollar index has risen roughly 1.6% since the escalation, supported by haven inflows alongside relatively resilient US economic indicators and higher oil prices.
Market strategists say the dollar’s recent performance reflects both its role as a defensive asset during periods of geopolitical stress and continued divergence in global growth and interest rate expectations.
Alex Cohen, FX strategist at Bank of America, said the broader macro backdrop continues to favour the US currency.
Speculative positioning has now remained net long on the dollar for 13 consecutive weeks, marking a notable reversal from pre-conflict trends when investors were holding roughly $22bn in bets on dollar weakness.
The CFTC data, which tracks derivatives positioning across the $9.5tn-per-day foreign exchange market, suggests a meaningful shift in sentiment among leveraged funds and asset managers.
Elsewhere, positioning also shows increased bearishness on the Japanese yen, with short yen bets rising to their highest level since 2017. The currency has recently traded near the 160 per dollar level, a zone that previously prompted intervention from Japanese authorities.
