Traders have been placing record amounts in options contracts, betting on a further decline in the U.S. dollar since 2011 amid the introduction of new trade tariffs. If traders’ expectations are confirmed, the dollar could drop to its lowest value in four years.
“The unpredictable political situation in the United States has negatively impacted the dollar,” said Jesper Fjarstedt, senior analyst at Danske Bank A/S. “The events of the last week have pushed markets to form a new premium for political risk.”
