Speculators cut their bullish bets on the US dollar in the latest week, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday. The value of the dollar's net long position, derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc and Canadian and Australian dollars, was $16.70 billion in the week to August 13, the lowest since July 23.
That compares with a net long position of $16.77 billion the previous week. To be long a currency means traders believe it will rise in value, while being short points to a bearish bias. In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the greenback posted a net long position of $12.31 billion in the week ended August 13, compared with $12.89 billion the previous week.
The dollar on Friday was roughly flat after worries tied to trade tensions and a US Federal Reserve interest rate cut weighed on consumer sentiment and after a report that Germany may run a deficit to boost growth lifted the euro. Measured against a basket of six other major currencies, the dollar was higher by 0.04% at 98.188. It has recovered by 1.20% from its three-week low on August 9.
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